Table of Contents Acknowledgments Acronyms List of Tables List of Figures SECTION 1 Executive Summary...

Transcription

1

2 2

3 Table of Contents Table of Contents... 3 Acknowledgments... 5 Acronyms... 6 List of Tables... 7 List of Figures... 8 SECTION 1 Executive Summary Background SECTION 2 Background Youth unemployment in Malawi Why agriculture? Why this age group? About this study SECTION 3 Market assessment methodology Stakeholder consultations Employer surveys Youth surveys Focus group discussions with youth and parents SECTION 4 Youth Profiles Mchinji youth profile Ntchisi youth profile Rumphi youth profile SECTION 5 Assessment of income generating opportunities through direct employment and enterprise development Direct employment opportunity analysis

4 Overview of surveyed enterprises SECTION 6 Conclusion and Recommendations Implement targeted skills development trainings depending on the district Work with parents/guardians Fully integrate the gender dimension Leverage partnerships Post program support as youth transition into viable livelihoods SECTION 7 Appendices: APPENDIX 1: About Save the Children and Youth in Action APPENDIX 2: District profiles APPENDIX 3: Interview guides and survey instruments APPENDIX 4: Stakeholder list APPENDIX 5: Works cited

5 Acknowledgments This market assessment emerges out of the shared commitment of Save the Children and The MasterCard Foundation to ensuring that livelihoods programming is demand driven. We would like to thank Save the Children s project leadership in Canada, the US, Denmark and Malawi, as well as The MasterCard Foundation and SC s local partners in Malawi, for their conceptual and logistical support and for their continuous review and feedback on the report. The support we received from Will Postma, Amanda Troy, Amy Mina, Ann Chikoko, James Lwanda, Matthew Pickard, Yoseph Gebrehiwot from Save the Children and Steve Cumming from The MasterCard Foundation has been invaluable. We also thank the team of surveyors, enumerators and data operators for being diligent while ensuring data quality. The tireless efforts of the in-country teams during the field work and data collection phase, in light of a tight schedule, was critical in making this assessment possible. Of course, this study would not have been possible without the openness and contribution of youth themselves, their parents, government officials, the private sector and other development actors in the Mchinji, Ntchisi and Rumphi districts of Malawi. Their insights, reflections and willingness to participate, review our findings and guide us to information sources are at the core of the report. The market assessment of high-potential agriculture value chains in Rumphi, Mchinji and Ntchisi districts in the northern and central regions of Malawi, was prepared by an assessment team from Dalberg Global Development Advisors. The assessment team was led by Madji Sock (Project Director) with support from Jules Some (Project Leader) and a team of researchers, writers and interviewers including Mabohlale Addae (Consultant), and Daniela Nwaobasi (Associate Consultant). -Dalberg Global Development Advisors 5

6 Acronyms ASWAp CAADP DAP GDP HIV/AIDS ILO JCE MCF MK MSCE NASFAM NES NGO PIPaH SC SME TA TVET TEVETA UNDP YEDF YIA Agriculture Sector Wide Approach Comprehensive African Agriculture Development Programme Developmental Asset Profile Gross Domestic Product Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome International Labor Organization Junior Certificate Examination The MasterCard Foundation Malawian Kwacha Malawi School Certificate of Education Examination National Smallholder Farmer s Association of Malawi National Export Strategy Non-Government Organization Presidential Initiative on Poverty and Hunger Reduction Save the Children Small and Medium Enterprise Traditional Authorities Technical Vocational Education and Training Technical Entrepreneurship and Vocational Education Training Authority United Nations Development Programme Youth Enterprise Development Fund Youth in Action 6

7 List of Tables Table 1: Key facts on employers in the target districts Table 2: Entry level jobs and requirements Table 3: Crop selection methodological summary Table 4: Staple crop input / production requirement overview Table 5: Market opportunity summary by staple crop Table 6: Fruit and vegetable value chains for assessment Table 7: District capability of additional production opportunities by district Table 8: Market opportunity summary by value chain for each additional opportunity Table 9: Ability for each value chain opportunity to initially integrate girls

8 List of Figures Figure 1: Overview of the market assessment methodology Figure 2: Educational attainment of the 12 to 14 age group in Mchinji Figure 3: Language skills of the 12 to 14 age group in Mchinji Figure 4: DAP results of the cohort in Mchinji Figure 5: Youth s interest in education in Mchinji Figure 6: Educational attainment of the 15 to 18 age group in Mchinji Figure 7: Language skills of the 15 to 18 age group in Mchinji Figure 8: DAP results of the cohort in Mchinji Figure 9: Salary range of the Mchinji sample Figure 10: Youth s interest in agriculture and activities of interest in Mchinji Figure 11: Educational attainment of the 12 to 14 age group in Ntchisi Figure 12: Language skills of the 12 to 14 age group in Ntchisi Figure 13: DAP results of the cohort in Ntchisi Figure 14: Youth s interest in education in Ntchisi Figure 15: Educational attainment of the 15 to 18 age group in Ntchisi Figure 16: Language skills of the 15 to 18 age group in Ntchisi Figure 17: DAP results of the cohort in Ntchisi Figure 18: Salary range of the Ntchisi sample Figure 19: Youth s interest in agriculture and activities of interest in Ntchisi Figure 20: Educational attainment of the 12 to 14 age group in Rumphi Figure 21: Language skills of the 12 to 14 age group in Rumphi Figure 22: DAP results of the cohort in Rumphi Figure 23: Youth interest in education in Rumphi Figure 24: Educational attainment of the age group in Rumphi Figure 25: Language skills of the age group in Rumphi Figure 26: DAP results of the cohort in Rumphi Figure 27: Salary range of the Rumphi sample Figure 28: Youth s interest agriculture and activities of interest in Rumphi Figure 29: Existing and projected entry level jobs by area Figure 30: Estimated maximum salary level per position Figure 31: Required skills by employers and their rating of these skills in youth Figure 32: Potential partnership support between Youth in Action and private sector employers

9 Figure 33: Crop production levels across the three districts Figure 34: Relative Profitability Analysis across key agricultural commodities in Malawi (Malawian Kwacha/Hectare) Figure 35: Youth interest in agricultural production opportunities Figure 36: Youth interest in key staple crops, aggregate and by district Figure 37: Sources of financing for sample SMEs Figure 38: Key barriers to access to finance for sample SMEs Figure 39: Landscape of agricultural lenders to SMEs Figure 40: Mchinji Land access status for the youth across surveyed counties Figure 41: Ntchisi - Land access status for the youth across surveyed counties Figure 42: Rumphi - Land access status for the youth across surveyed counties Figure 43: Youth interest in skills training in Mchinji Figure 44: Youth interest in skills training in Ntchisi Figure 45: Youth interest in skills training in Rumphi Figure 46: Limiting factors and their impact on enterprise development Figure 47: Risk factors across the value chain: staple crops Figure 48: Risk factors across the value chain: other opportunities Figure 49: Value chain opportunity assessment and selection summary, crops Figure 50: Value chain opportunity assessment and selection summary, fruits and vegetables Figure 51: Value chain opportunity assessment and selection summary, rearing

10 SECTION 1 Executive Summary Background Malawi has a very youthful, rural population, with 84.7% of its population living in rural areas, 6 under the age of 20 years old, 48% under 18 years and 4 between years 1. Malawi is also one of the world s poorest and least developed countries, with the 2010 UNDP Human Development Report 2 ranking it 153 rd out of 169 countries. The Government of Malawi has recognized the important role that agriculture plays as a source of income and livelihood improvement in the country. Development actors, such as Save the Children (SC), are supporting national efforts to increase youth s skills, employment, entrepreneurship and development, especially in rural areas, through initiatives such as the Youth in Action program targeting youth in Mchinji, Ntchisi and Rumphi districts. To guide the program s overall interventions, Dalberg Global Development Advisors conducted a market assessment of employment and entrepreneurship opportunities across high-potential agricultural value chains. The overall objectives of the market assessment were to identify agricultural value chains with the ability to absorb youth through enterprise development or direct employment. The team: 1. Assessed high-potential value chains; 2. Analyzed direct employment opportunities; 3. Reviewed the enabling environment; 1 National Statistics Office in Farmer s Forum for Trade and Justice, Current and Emerging Youth Policies and Initiatives and their links to agriculture, 2008, page 5. 2 Human Development Report in Farmer s Forum for Trade and Justice, Current and Emerging Youth Policies and Initiatives and their links to agriculture, 2010, page 5. 10

11 4. Identified the opportunities and challenges to increase youth development in the impact area. Youth profiles The field studies reveal that youth s assets, interests and aspirations vary across each district and by gender, reflecting varying economic, cultural and geographical conditions in which they live. Understanding these differences will be fundamental to customizing interventions that will support youth in improving their socio-economic conditions. Key findings for the districts are summarized below. Educational assets In focus areas, youth have faced challenges in accessing education, mainly due to their parents financial hardship and additional constraints, such as early marriages. A majority of the youth surveyed in all districts have not completed primary school education, resulting in limited numeracy and literacy skills 3. There were few educational attainment gaps by gender, suggesting that barriers to educational attainment are somehow similar for girls and boys. Major barriers regarding access to education include: (i) parents not prioritizing education; (ii) financial resources; (iii) early marriages; and (iv) high child orphan rate. To build the skills of youth in the impact areas, it is important to integrate literacy and numeracy into the programming, given youth s low educational attainment. It is also important that the program pay close attention to life skills, the capacity of teachers and the school environment when partnering with schools. Developmental Assets 4 Performance around the developmental assets varies by district. In Mchinji, girls felt stronger than boys about their developmental assets. In Ntchisi, boys outperformed girls on most dimensions of the Developmental Asset Profile (DAP) while in Rumphi, the 3 For the purposes of this assessment, literacy is used to denote the ability to read or write, and numeracy as the ability to understand fundamental mathematics and apply basic numerical concepts. 4 The DAP is an assessment framework developed by Search Institute to provide a brief standardized description of young people s internal and external assets. 11

12 younger female cohort felt stronger about its developmental assets than its male peers, unlike the elder cohort where boys felt stronger about their developmental assets than girls. Variations in the developmental assets may be influenced by different factors, potentially including the overall economic situation across the different districts. For instance, Mchinji, which is the most economically advanced district, may provide better income-generation opportunities for women, thus influence their overall DAP. To help youth capitalize on their developmental assets, it is important that programs understand the different challenges youth face within their communities and tailor interventions to address those issues. In the long run, this will result in increasing youth s sense of initiative, their self-confidence, as well as their sense of control over their lives and futures, which are critical success factors to enable them to sustainably improve their socio-economic condition. Youth interest in going back to school The younger cohort s (12-14) interest in going (back) to school varies by district. Youth from Ntchisi show lacklustre interest in education, with those interested in education preferring vocational training. Youth from Mchinji and Rumphi show keen interest in going (back) to school, with those from Mchinji preferring general education, as opposed to those from Rumphi who prefer vocational training. Youth livelihoods and interests in agriculture-related jobs Youth involvement in income-generating activities mainly consists of seasonal or irregular activities. Girls tend to prefer activities that will not take them far from their homes, while boys have fewer constraints with regards to the activities they can engage in. Overall, youth s current monthly remuneration is clustered around the <3500MK (9.72 USD) range, as well as the 3500MK-7000MK (9.72 USD-19.44USD) bracket. In terms of interest in agriculture-related jobs, overall, 82% of youth surveyed indicated a firm interest in pursuing agricultural employment. In agriculture, the year olds chose the following jobs in order of preference: farming, stock-breeding and agrodealing. In Mchinji, youth mentioned a keen interest in growing: groundnuts, beans, 12

13 pigeon peas, rice, potatoes and cassava because they get quick money especially where the crops do not require fertilizer like beans and pigeon peas 5. In Ntchisi, youth were interested in: (i) farming; (ii) stock-breeding; (iii) bee-keeping; and (iv) agro-dealing and in Rumphi, youth expressed a keen interest in employment in agriculture. Assessment of income-generating opportunities through direct employment and enterprise development The study also assessed the ability of the private sector to directly employ youth, in addition to analyzing specific value chains to understand their potential for supporting youth-focused enterprise development. Direct employment opportunity analysis The private sector has limited capacity to absorb unemployed youth. The survey sample estimates that approximately 124 jobs will be created over the next five years in the impact area, indicating that, overall, the private sector revealed very limited job prospects in the formal sector within focus districts. These prospects may, however, be downplayed by employers. In 2012 alone, 169 entry level posts were filled, while projections for the next five years point to approximately 124 jobs. These suggest that future recruitments could be higher than current companies forecasts. Even if this increase were to happen, additional jobs would not significantly change the private sector absorption capacity, which is expected to remain low. Companies are looking to hire on average approximately 77% of 2012 s total hires, i.e. the number of new positions to be filled is on average equal to 77% of the total jobs filled in The most aggressive growth is expected in Rumphi, with 54% of all surveyed future expected jobs. At 43% of all current posts, Rumphi is also the district with the highest number of posts filled in Employment with the private sector offers a better remuneration, as monthly salaries range from MK 7,000 to MK 21,000 (USD to USD 58.32). While the positions present better revenue than youth s current activities, it seems in the near 5 Youth focus groups,

14 future, youth will only be eligible to work as clerk, cashier, office assistant, porter, or security personnel, as the minimum age requirement for these activities is 18 years. Furthermore, this suggests only a portion of the elder cohort can tap into these opportunities given the age requirement. Enterprise development opportunity analysis Based on the outcomes of the market assessment conducted, which shows only 124 jobs available for youth in the impact areas over the next five years based on the surveyed sample, it appears that self-employment and enterprise development will be the mechanism to create more opportunities for youth in the agriculture sector. The survey found that opportunities will most likely be created through youth s own entrepreneurship, given the dearth of jobs. The analysis focused on key value chains 6 which were segmented into two categories: 1) crop production (staple crops); and 2) additional production opportunities (vegetables, and animal rearing), and were assessed across a set of assessment criteria. Value chain opportunity analysis Based on production levels, and consultations with key stakeholders, groundnut, soyabean, wheat, maize and cassava were assessed as staple crops that presented opportunities for youth, while potato, chili, bean, chicken, goat and pig were assessed as additional opportunities. These value chains were further assessed along additional criteria: District capability plus crop profitability. Wheat, soya beans, and maize appear to be particularly profitable. Input / production requirements. Access to inputs, such as new seed varieties, storage facilities, chemical fertilizers and pesticides, will be critical in maximizing the production of viable crops. 6 Each value chain was assessed against a set of criteria to determine those in which youth could more easily engage. Value chains chosen were those with the highest score. 14

15 Market opportunity. High-potential crop value chains should have access to markets, relatively high market prices and moderate to high price variability. Wheat, soya bean and groundnut appear to have the highest market prices. They are also considered high-value crops that are easily scalable and can be processed. With regards to other opportunities, chili and milk have high market prices with increasing local demand. Time to market. To ensure relatively quick return for youth, particular focus should be placed on value chains that can generate income relatively quickly. Value chains with the fastest return include: chicken and pig (6 weeks to 1 year); groundnut and potato (3-4 months). Youth interest. Overall, youth appear to be more interested in on-farm production. They also find production opportunities, such as stockbreeding, to be of interest. Cross cutting criteria For youth to successfully engage in enterprise development across high-potential value chains, they will need to have adequate access to finance and land, and be equipped with specific skills and competencies in addition to supporting gender equity. Access to finance Adequate access to financial resources will be critical to the success of entrepreneurship activities undertaken by target youth. The World Bank s 2013 Doing Business Report rates Malawi 157 of 185 when it comes to overall Ease of Doing Business 7. Malawi scored particularly poorly when it came to access to credit, ranking 129 of185. Given financing constraints, it is critical to consider promoting value chains that have relatively minimal start-up costs (broken down by value chain in the analysis). 7 The World Bank, Doing Business 2013, pg

16 Access to land Most youth believed that they had access to land for farming purposes. Parents, on the other hand, were quite ambivalent about land availability for youth. The different districts agricultural officers, however, reported that land can be accessed through traditional leaders and elders, provided that the program makes formal requests to such authorities. Also, depending on gender, access varies as a result of cultural practices within the districts. Promoting value chains that have minimal land requirements or have the ability to produce large yields per hectare is important, as that is where youth can more easily engage. Skills requirement For youth interested in farming activities, they are most interested in capacity and skillbuilding in farming, stock breeding, and agro dealing, across districts. However, a substantial challenge in improving the skillset in Malawi is the limited capacity available in the Technical Vocational Education and Training (TVET) sector. Gender equality Barriers (e.g. finance, land, cultural) affecting women are greater than those affecting men, impacting their livelihoods. Most women-owned enterprises are in the initial state, with low economic impact and high prevalence of barriers. Stock breeding and vegetable production appear to be most likely to initially integrate girls, as it will enable them to stay close to their households. Strategic areas of focus for the promotion of youth employment in the impact area Programs aiming to improve young people s socio-economic status through employment or entrepreneurship should primarily focus on enterprise development. The following 16

17 products and their value chains selected based on the set of criteria above appear to be the most viable for youth: pig, poultry, cassava and soya bean 8. To further facilitate enterprise development, along the key value chains, additional opportunities also include training and support programming in the following areas: input supplying; transport, storage, and distribution; marketing; equipment maintenance / tool making; and para-vet services. In addition, there is a need to strengthen youth s life skills especially in mathematics and written and oral communication. Conclusion and recommendations This report sought to identify high-potential agricultural value chain opportunities given the challenges, opportunities and needs for youth within the impact areas, and how they can best access high-potential value chains to ultimately improve their development, while positively impacting their livelihoods. While recommendations are addressed to Save the Children, they are also intended to have the ability to guide the development of similar programs. Recommendations are as follows: Implement targeted skills development trainings depending on the district; Work with parents/guardians; Fully integrate the gender dimension; Leverage partnerships with financial institutions, local governments, artisans and schools, as well as development partners; and Include post-program support as youth transition into viable livelihoods. The details of these recommendations are presented in the full report. 8 With regards to the animals chosen, choices were made based on feedback from the three districts where as much as possible preference was given to activities that could be implemented across the three districts. In addition, the animals chosen were validated during the final validation workshop held with the stakeholders. 17

18 SECTION 2 Background Youth unemployment in Malawi Malawi has a very youthful, rural population, with 84.7% of its population living in rural areas, 6 under the age of 20 years old, 48% under 18 years and 4 between years 9. Malawi is also one of the world s poorest and least developed countries, with the 2013 UNDP Human Development Report 10 ranking it 170 th out of 186 countries. Given the lack of development, the economy is largely agrarian, with 8 of the total national workforce dependent on agriculture for income. Sixty percent 11 of young Malawians farm, although the majority is involved in subsistence farming on their parents and guardians farms. The Government of Malawi has recognized the important role that agriculture plays as a source of income and livelihood improvement in the country. Three interventions in the Malawian policy environment focus specifically on government s attempts to drive growth in agriculture: Agriculture Sector Wide Approach (ASWAp): This is a medium-term strategy for the agricultural sector in Malawi. In essence, it provides the framework for donor investment in the agricultural sector, improving coordination between development partner and public sector investment. In addition, it aligns the poverty reduction goals of the Malawi Growth and Development Strategy (I&II) with the growth requirements of the Comprehensive African Agriculture Development Programme (CAADP). The National Export Strategy (NES): The NES aims to develop a prioritized roadmap for increasing Malawi s productive capacity so as to reduce the 9 National Statistics Office in Farmer s Forum for Trade and Justice, Current and Emerging Youth Policies and Initiatives and their links to agriculture, 2008, page UNDP Human Development Report, 2013, page National Youth Council of Malawi, Malawi National Youth Profile,

19 country s trade deficit. The strategy aims to diversify Malawi s export base so as to promote export competitiveness, as well as economic empowerment. Specifically the strategy is based on three key considerations: prioritizing product clusters with high spillover opportunities into other value chains, balancing export competitiveness with economic empowerment and supporting economic institutions and fostering stakeholder ownership. The Presidential Initiative on Poverty and Hunger Reduction (PIPaH): The PIPaH is a national taskforce which aims to complement the ASWAp by focusing on reducing poverty and hunger through agriculture focused interventions. Its key focus areas include: (i) improving productivity for food security; (ii) empowerment through farm mechanization; (iii) promotion of special crops for exports; and (iv) promotion of irrigation farming. It must be noted that the only policy which focuses specifically on youth is the National Youth Policy 12, which focuses on establishing an enabling environment for youth participation in five key development sectors. These include: (i) Education; (ii) Science; Technology and Environment; (iii) Health and Nutrition; (iv) Social Services, Recreation, Sports and Culture; (v) Youth Participation and Leadership; and (vi) Youth Economic Empowerment. However, the policy does not outline any specific interventions in the agricultural sector. This gap, given the agrarian nature of the Malawian economy and the fact that 82% of Malawians aged are unemployed, presents an opportunity to harness the agricultural sector for youth economic empowerment. The Youth in Action (YIA) Programme hopes to support efforts to address this gap. Why agriculture? The Malawian economy depends on the agricultural sector, as it is the single largest contributor to the GDP (accounting for almost one-third of the GDP 13 ). The sector has also grown an approximate 8.9% per annum between 2006 and Malawi is poised 12 Ministry of Youth and Sports, National Youth Policy, Youth: the Nation Today and Tomorrow, USAID, Opportunities for private sector investment in the Malawian agricultural sector, 2012, page International Monetary Fund in USAID, Opportunities for private sector investment in the Malawian agricultural sector, 2012, page 9. 19

20 to be a significant player in a variety of value chains, as it possesses abundant means for agricultural production including: Water resources: 2 of Malawi s land area is covered by water, with significant irrigation potential along Lake Malawi s shoreline and the Shire Valley. Favorable agro-ecological conditions: Malawi has a combination of good climatic conditions and fertile soil for a growing wide variety of crops, including cereals, pulses, fruits and vegetables. Land: 45% of Malawi s land area is covered by arable land. 18% of this land is not being utilized for agricultural production. This is largely because this land is under customary law, which makes it inaccessible to investors and subsistence farmers, alike. Growing population with agricultural skills: 8 of the population is employed within the agricultural sector, the majority of which does have a basic skill-set for agriculture, albeit very traditional (rain-fed agriculture using the hand-hoe). Why this age group? Young people between the ages of 12 and 18 are at a formative stage in their lives. It is during this stage that they start to explore what they want to do, dream about their future, seek guidance from adults and look to build networks that will help them down the road. Often, they express feelings of frustration and concern about their abilities and options. Knowledge and skills are pivotal at this age; even more important are selfconfidence, support and a sense of hope and belief in their own ability to act. Many young people around the world are already involved in some form of work at this age, be it in the family business or farm, at home or outside the family, whether or not they are in school. In some cases, many are involved in hazardous work that does not allow them to enjoy a healthy life and/or pave the way for a productive future. Those that find themselves out of school are less likely to gain the knowledge and skills that will best prepare them for the ambitious careers they once dreamed of, hindering them from achieving their full potential. Many youth employment programs are working with older youth (18 and above). SC and The MasterCard Foundation, specifically, chose to work with the younger age group to address a gap in programs. This was done with the intention of giving the younger 20

21 youth a jump-start on the development of relevant skills and knowledge, helping them build the self-confidence and support networks essential for the transition to viable productive lives and offering them opportunities to explore both their own interests and the options around them in their rural communities. This kind of skill-development and work-exploration is common around the world for the younger youth in this age group, whether within the school environment or through part-time work or micro enterprises for youth. Supporting young people in this formative period helps them meet adulthood with greater confidence, hope and a stronger sense of their own abilities and the opportunities around them. About this study To guide the program s overall interventions, Dalberg Global Development Advisors conducted a market assessment of employment opportunities across high-potential agricultural value chains. The assessment team worked closely with SC and its local partners to implement an assessment methodology within the impact area: Rumphi, Mchinji and Ntchisi districts. The overall objectives of the market assessment were to identify and prioritize local agricultural sub-sectors with high potential for absorbing youth through enterprise development or direct placement job opportunities, and to identify demand-driven marketable skills needed to meet the needs of the sector. Report structure The purpose of the report is to elaborate on the findings of the market assessment, which was conducted in Malawi between 21 January and 1 February, Following the background (Section 2) and a description of the methodology (Section 3), Section 4 presents the profile of surveyed youth per district with an overview of their assets, livelihood and interests. Section 5 details opportunities identified in target sub districts (self-employment/enterprise creation and employment opportunities with the private sector). Finally, Section 6 concludes the findings in this report and recommendations, followed by Appendices. About the impact areas The study focused on both rural and semi-urban areas in the three districts of Mchinji and Ntchisi in the Central Region of Malawi and Rumphi in the Northern Region. These 21

22 three districts have the highest concentration of tobacco farming by both estate owners and smallholder farmers, and a very high level of child work through tenancy contracts and demand for youth domestic support. For girls, livelihood generating activities are mostly limited to household chores. Ntchisi is widely known for its conservative culture, and high dependence on agriculture. It is the most rural and has only recently been connected by a paved road to the capital city, Lilongwe. However, the population is more settled. Mchinji is the main corridor to Zambia through Chipata, and has fairly good access to Lilongwe. Mchinji has large-scale tobacco farming, with a relatively mobile population. This is mainly due to tenancy labour and the good road network to Zambia and neighboring districts. A significant level of cross-border trade takes place. Rumphi has similar demographics as Mchinji. While literacy is very high, recent trends show alarming levels of school dropout and harmful child work. Alcohol abuse is also a growing problem among youth. 22

23 SECTION 3 Market assessment methodology The overall market assessment was structured around four areas. Figure 1 maps each assessment area and its corresponding activities, approach, and end goals. As illustrated in the figure below, the assessment approach included a combination of the following: Desktop research, documentation review, initial analysis and methodology refinement; Stakeholder consultations (government officials, financial institutions, Technical Vocational Education and Training centers, development partners; Employer surveys; Youth surveys; and Focus group discussions with youth and parents. 23

24 Figure 1: Overview of the market assessment methodology Assessment area Activity Approach Goal 1 Analysis of high potential value chains Identify high potential value chains Short listing of crops for in-depth analysis Desktop research and document reviews Stakeholder consultations Youth surveys Focus group discussion Recommend high potential value chains for enterprise development for youth. 2 Analysis of direct employment opportunities in the private sector Identify opportunities within agricultural enterprises Identify required skills and current salaries Employer surveys Understand hiring potential of private enterprises engaged along agricultural value chains Have employers view on skill requirements and expectations 3 Review of the enabling environment Review local context focusing on issues such as access to land, finance and cultural barriers. Desktop research and document reviews Stakeholder consultations Youth surveys Focus group discussion Better understand opportunities and challenges regarding youth employment and enterprise development 4 Understanding the opportunities and challenges to youth development Profile the target population by understanding their level of education, developmental needs and current interests Desktop research and document reviews Stakeholder consultations Youth surveys Focus group discussion Understand the challenges facing youth and how their needs can be met The following sub-sections describe each methodological approach. Desktop research, document review, initial analysis and refinement of the methodology The assessment was initiated with desktop research and a review of documentation provided by SC, which provided the team with a better understanding of the impact areas. Specifically, the team reviewed documents regarding youth employment, enterprise development and the challenges and opportunities of the agricultural sector. The team also reviewed documents provided by SC to understand the goals and features of the program. Finally, the assessment team consulted with SC and its local partners and the Search Institute to finalize a country-specific approach and validate initial hypotheses, which led the design of the survey tools and interview guides that were used during stakeholder consultations. 24

25 Stakeholder consultations Interviews were conducted not only in the three target districts but also in Lilongwe. Qualitative data was collected using interview guides tailored specifically for each stakeholder type, including: Government officials: With the objective to: (i) better understand the country and regional context and priorities in agriculture; (ii) identify agriculture programs targeting youth; (iii) pressure test, shortlist and confirm value chains to target for interventions; and (iv) collect government perspectives on issues the program should consider; Financial institutions: With the objective to: (i) identify existing and planned interventions in agriculture; and (ii) identify partnership opportunities; Technical Vocational Education and Training (TVET) institutions: With the objective to: (i) identify current training available to youth; and (ii) assess partnership options with training institutions to build the program s capacity to deliver targeted training programs; and Development partners: With the objective to: (i) identify development partners existing and planned interventions in agriculture and youth; and (ii) identify partnership opportunities Employer surveys A total of 19 employers were surveyed during the assessment. Targeted employers included formal businesses in the agriculture sector and were based in the impact area. The main objectives of the employer surveys were to: (i) identify the types of available jobs in agriculture value chains; (ii) understand skills and competencies required for those jobs; and (iii) assess their hiring perspectives in the next five years. A questionnaire was used to survey employers that included a mix of quantitative and qualitative questions (see Appendix). Within the target districts, parents clearly made it known they did not want their children to be far from their communities. This request was considered by the assessment team and influenced the limited sample of private enterprises. 25

26 Youth surveys A total of 348 youth were surveyed in the three districts. The assessment team surveyed two groups of youth (those aged and those aged 15-18). For the younger cohort aged 12 to 14, the objective is their reintegration into formal and nonformal education. For the older cohort, aged 15 to 18, the objective is their successful transition to viable livelihood opportunities within the agricultural sector. The main objectives of the survey were to: (i) assess youth s interests in education and employment in agriculture value chains; (ii) understand their constraints in securing a job or creating their own business; and (iii) assess their capabilities and identify skills development needs. Focus group discussions with youth and parents Focus groups included the youth surveyed and their parents, who were interviewed separately. 15 The main objectives of the focus groups were to: (i) assess youth s interests in education and employment in agriculture value chains; (ii) understand their constraints in securing a job; and (iii) assess their interest, capabilities and identify skills development needs. Twenty-eight youth focus group discussions were conducted. The main objectives of engaging parents were to: (i) understand their perspectives about their children s interest in the agricultural sector; (ii) gain viewpoints on how much they would support their child s interest (or disinterest) in engaging in agricultural activities; and (iii) understand the support they may provide their children who are attracted to the agricultural sector. (See Appendix for sample focus group discussion guides). 15 Focus groups were held directly after the youth surveys (the groups contained the same youth). 26

27 SECTION 4 Youth Profiles Youth aged represent the target age group for the YIA program. The field studies have revealed that their assets, interests, and aspirations vary across locations. Given YIA s anchorage in the local context, understanding these factors will be fundamental to the program s success and to help tailor interventions that can effectively support youth in improving their socio-economic conditions. The program has two immediate outcomes articulated around the target age groups: for the younger cohort, aged 12 to 14, the objective is its reintegration into formal and non-formal education. For the older cohort, aged 15 to 18, the objective is its successful transition to viable livelihood opportunities within the agricultural sector. Based on these specific objectives, this section presents the characteristics by district of youth interviewed during the market assessment. First, a profile of the 12 to 14 group is presented, which includes a review of their assets (education levels, language ability, Developmental Asset Profile -DAP), followed by their interest in reintegrating into the school system and challenges faced. The second part profiles the 15 to 18 age group, including their assets, livelihoods and interest in employment, with an emphasis on agricultural related opportunities. Mchinji youth profile Mchinji is a district in the Central region of Malawi. It is bordered by Lilongwe to the east, Kasungu district to the North, Zambia to the West and Mozambique to the South. It has a total population of 456, people, which represents 3% of the Malawian population. The district has a population density 8 of 136 persons/km 2, which is lower than the national average of 139 persons/km 2. Mchinji district has a young population, 48% of which is between the ages of 0 and Mchinji District Assembly, District Development Plan

28 In terms of literacy, the District Development Plan 8 recognizes low literacy levels as a developmental issue. It is difficult to assess the extent of poor literacy in the district due to a lack of data. The 2008 Mchinji District Assemply Socio-Economic profile 17 cites [lack of data availability] within the district education office as the reason for a lack of data on the primary school pass rates. The report does acknowledge the pupil: teacher ratio of 89:1 (recommended value is 60:1) in the district as a major hindrance to the provision of quality education. The Mchinji labour force is largely unskilled. In 2008, 88% of the registered job-seekers at the district office were unskilled. One hundred and thirty youth surveys were entered in the Mchinji district, from youth in two extension planning areas: Chiwoshya and Mikundi, specifically the Mduwa and Zulu Traditional Authorities (TAs). A total of ten focus group discussions were completed, six with parent groups and four with youth groups. The following section discusses the survey and focus group findings, specifically exploring the assets, interests and challenges of the two youth cohorts the age group and the age group. Part 1: Cohort profile for the age group: assets, interests and challenges The purpose of this section is to discuss survey and focus group findings for the year age group, under three main sections: Educational assets; Developmental assets profile; Interest in returning to school. Educational assets findings Eighty-six percent of all youth in the age group in Mchinji had not completed primary school education. Girls represented 45% of the group. In addition, only 6% had completed primary education. This means that 8% of youth cannot be accounted for in the primary education system, and have likely never been enrolled in primary schooling. 17 Mchinji District Assembly, Socio-Economic Profile

29 Only 3% of students were enrolled in secondary, and none had completed secondary school education. This is to be expected. as secondary schooling typically starts at age 14 in Malawi. Lastly, whilst 5% of the year olds had enrolled in formal or informal vocational training, none had completed this training. Figure 2: Educational attainment of the 12 to 14 age group in Mchinji Educational level_mchinji_12-14, (n=66) 86% Male Female 41% 45% 6% 5% 2% 3% 3% 2% 2% 3% 2% 2% None Primary not Primary completed completed Secondary not completed Secondary completed Non-formal vocational training not completed Non-formal vocational training completed Vocational training not completed Vocational training completed Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis Poor primary school completion and overall poor educational outcomes are consistent with data presented in the socio-economic profile. Only 78% of youth between five and 15 are enrolled in primary school. Conditions 18 in the schools are not always conducive to learning, largely due to over-crowding and too few qualified teachers. The average number of pupils per classroom is 100, the average pupil: desk ratio is 13 (as opposed to the recommended 2 pupils per desk), whilst the pupil to teacher ratio is 89:1. Various social factors also exacerbate the situation. Focus group discussions revealed four main barriers: (i) limited parental guidance and support, (ii) financial resources, (iii) early marriages, (iv) high child orphan rate. Parent focus groups cited lack of interest from parents in guiding their children as a key challenge facing youth in the district. Parents 18 Mchinji District Assembly, Socio-Economic Profile,

30 and youth alike lamented a lack of financial resources as a key barrier to school-entry. The District Youth Officer indicated that Mchinji had the highest rate of teenage pregnancy amongst all districts; he attributed this primarily to early marriages as well as the influence of migrant labourers from neighbouring Zambia and Mozambique. Lastly, Mchinji has a very high rate of youth orphans. Data from the Social Welfare office indicates that in 2008, 93% 19 (24,422) of all social welfare assistance cases were attributed to orphanhood. The scarcity of formal employment opportunities and lack of role models for the youth across the different districts are additional factors exacerbating poor school completion rates. In terms of language competence, the graph for written and spoken English shows that year old students in Mchinji cannot read and write in English. This is not entirely unusual, as Chichewa is spoken by 92% of the population, whilst English is spoken by 0.2% and the language of instruction for the first four years is Chichewa, with English as a school subject Mchinji District Assembly, Socio-Economic Profile, Investigating bilingual literacy: Evidence from Malawi and Zambia - Education Research Paper No. 24, 1998,

31 Figure 3: Language skills of the 12 to 14 age group in Mchinji Language skills (Spoken English), (n=68) 57% Language skills (Written English), (n=68) 5 28% 24% 29% 26% 12% 7% 6% 1% 3% 3% 7% 4% 4% 3% 1% 1% 1% No competence Basic Average Good Excellent No competence Basic Average Good Excellent Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis Developmental Assets Profile findings The figure below illustrates the findings of the DAP for the 12 to 14 age group by gender. Overall scores have been calculated, and are 53% for the girls and 49% for the boys. These scores are an indication of how the youth feel, overall (i.e. 10 represents a best describes me / strongly agree across all questions). 31

32 Figure 4: DAP results of the cohort in Mchinji DAP results_12-14_(girls), (n=36) DAP results_(12-14)_boys, (n=32) I take the initiative to develop my talents and interests 29% 21% 24% 26% 1 24% 31% 34% I ask adults for guidance and help on pursuing my talents 19% 32% 16% 32% 33% 33% 17% 17% I choose friends who support or help me develop my talent 35% 35% 6% 24% 45% 21% 14% 21% I m good at finding the resources I need to get better at 26% 47% 6% 21% 38% 41% 1 1 I take responsibility for what I do 21% 44% 12% 24% 17% 38% 7% 38% I find good ways to deal with things that are hard in my 26% 32% 15% 26% 14% 43% 14% 29% I feel in control of my life and future 9% 5 21% 21% 21% 1 17% 52% I feel good about myself 15% 27% 12% Describes me a lot/strongly agree Describes me/agree 45% Describes me a little Disagree 24% 7% 17% 52% Does not describe me at all /Strongly disagree Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis In terms of attitudes, girls agreed (54% agreed/strongly agreed) more than boys (34%) that they were inclined to take the initiative to develop their talents. Girls spoke mostly about how they do field work and do casual labour to develop their talents. Both sexes expressed exasperation that there was no one to guide them, and they therefore lacked direction. Boys (66% agreed/strongly agreed) were more inclined to seek out parental guidance. Girls appeared disillusioned with the advice and guidance they are getting from parents. Most of their disillusion stems from an inability to convince their parents to send them back to school. This is supported by some of their comments: I tell my parents that I want to be a teacher but they tell me that I cannot because they are poor and cannot afford to buy me stationery ; I am interested in school, but my parents are not interested in school issues. Girls consider themselves more adept at selecting friends who are likely to support or develop their talents. Based on comments made by boys, it would appear that their friendship choices are quite random; they also do not appear to take corrective measures even when they feel that their friends influence them badly: Feels it s not important to choose friends ; I choose friends randomly ; I don t choose my friends even though most of my friends tend to have bad behaviour. Interestingly, although girls were more inclined to take initiative to develop their talents, they were less inclined to agree/strongly agree that they were good at finding resources to support their talents and interests. This may be a result of limited income-earning opportunities, particularly given the high incidence of early marriages and teenage 32

33 Lack of role models to inspire youth to take interest in education and training. Parents in Mchinji pregnancy. Boys also appear to have more casual jobs, especially those which involve a craft or a trade (e.g. construction). There was no considerable difference in boys and girls agreement about their ability to manage difficult situations. However, girls (65% of girls agree/strongly agree compared with 51% of boys) do consider themselves to be more responsible. The greatest disparity in results was seen when it came to perceptions about being in control and feeling good about themselves. Boys had alarmingly low scores when it came to a sense of control, with only 37% of boys (compared with 59% of girls) agreeing strongly/ agreeing about being in control. When probed further, it appeared that access to resources was equated with control, as most boys cited poverty and a lack of financial resources as the reason for a sense of no control. Boys and girls scored equally badly when it came to self-perception, with 31% and 42%, respectively, indicating that they agreed/strongly agreed that they felt good about themselves. This may be connected to comments made during focus group discussions by youth who expressed that they felt under-rated by the community and that they are not given a chance to prove themselves and are regarded as youngsters and this demotivates them. In addition, youth who were in school were also more likely to feel better about themselves. Youth interest in going (back) to school Most youth show a keen interest in going back to school. Focus group discussions revealed the following five key factors that are keeping youth out of school. 33

34 Figure 5: Youth s interest in education in Mchinji Interest in going (back) to school_ (n=68) Training interest (n=68) Male General education Vocational training 49% 22 51% 23 67% 6 33% 3 Female 93% 27 No preference % 2 Yes No Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis Poor discipline and peer pressure: Parents describe the misconduct of youth as a huge barrier both to youth performing well in school and remaining in school. Specifically, parents cite alcoholism, use of marijuana, and sexual promiscuity as key areas of youth misconduct. It is interesting to note that 24% of girls and 21% of boys disagreed with the statement: I choose friends who support or help me develop my talents and interests. This could (but does not necessarily) support the parents claims, as those who do not support talents and interests may also be those who promote what parents consider to be anti-social and destructive behaviour. Parents also cite poor role-modeling as a key reason why youth do not stay in school. Mainly illiteracy of the parents poses as a challenge to the youth, because they are not mentored by the parents to work hard and forge ahead in life. Parents in Mchinji Lack of financial resources: This was the most commonly cited reason for youth not attending school. Parents and youth alike lamented insufficient financial resources to pay for school fees, afford learning materials and travel to school. 34

35 Forced work in neighbouring countries: Parents complain about how some youth are sent to Zambia or Mozambique to work for their school fees. The Socio-Economic profile reports that only 428 out of 524 of the reported number of children withdrawn from school were sent back to school in There were also three cases of illegal child trafficking that were reported and prosecuted. Limited parental support for education: Parental illiteracy was cited as one of the reasons why parents did not send children to school. Mchinji had 144 adult literacy centres with approximately 2,346 enrolled students in Illiterate parents often prefer their children to stay at home and work on the family farm. Parents also feel that, due to poor employment prospects, there is little benefit to be derived from the expense of sending youth to school. It must be noted that this is not true of all parents, as there were those who explicitly expressed support for educating their children, particularly because they felt that the knowledge they gained at school made them more useful on the farm. Part 2: Cohort profile for the age group: assets, current livelihoods, interests and challenges The purpose of this section is to discuss survey and focus group findings for the year age group, under two main sections: They are expelled from school. When they drop out of school they are left illiterate, thus cannot pursue further education. Parents in Mchinji Educational assets and Developmental Assets Profile (DAP) Existing youth livelihoods and interests Educational assets and DAP findings For the year old category, 29% of students had started but not completed secondary school education. It is interesting to note that there was equal representation of girls and boys in this category. This does not bode well for literacy and numeracy levels for this age group. At this age, students should either be enrolled in secondary 35

36 schooling or have completed secondary school. Secondary school pass rates in Mchinji are generally quite low. In 2007, only 9% 21 of the enrolled secondary school students obtained the Malawi School Certificate of Education Examination (MSCE) 22, whilst 2 obtained the Malawi Junior Certificate Examination (JCE) 23. The Socio-Economic profile 24 attributes low pass rates to the lack of infrastructure and equipment at schools. In 2007 only 5 out of 34 schools had science laboratories, whilst only 10 had libraries. Figure 6: Educational attainment of the 15 to 18 age group in Mchinji Educational level_mchinji_15-18, (n=62) 44% Male Female 29% 29% 15% 13% 1 6% 15% 15% 6% 6% 3% 5% 5% None Primary not completed Primary completed Secondary not completed Secondary completed Non-formal vocational training not completed Non-formal vocational training completed Vocational training not completed Vocational training completed Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis In the year old age group, whilst overall most youth express no competence in writing and speaking English, there are 25% of youth who consider themselves good/excellent at writing English, compared with 9% who consider themselves good at speaking English. This shows that the manner in which English is taught at schools does not build strong spoken English skills. 21 Mchinji District Assembly, Socio-Economic profile, , page National exam written at the end of secondary school. 23 National exam written after two years of secondary school. 24 Mchinji District Assembly, Socio-Economic Profile,

37 Figure 7: Language skills of the 15 to 18 age group in Mchinji Language skills (Spoken English), (n=62) 48% Language skills (Written English), (n=62) 29% 27% 21% 23% 1 15% 21% 15% 6% 8% 13% 8% 5% 3% 3% 6% 6% 6% 11% 11% 6% 3% 8% 8% 1 1 No competence Basic Average Good Excellent No competence Basic Average Good Excellent Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis The figure below illustrates the findings of the DAP for the 15 to 18 year old age group, by gender. Overall scores have been calculated, and are 58% for the girls and 49% for the boys. These scores are an indication of how the youth feel, overall (i.e. 10 represents a best describes me / strongly agree across all questions). 37

38 Figure 8: DAP results of the cohort in Mchinji DAP results_15-18_(girls), (n=24) DAP results_(15-18)_boys, (n=38) I take the initiative to develop my talents and interests 39% 17% 17% 26% 53% 16% 5% 26% I ask adults for guidance and help on pursuing my talents 32% 21% 25% 21% 4% I choose friends who support or help me develop my talent 3 61% 4% 4% I m good at finding the resources I need to get better at 35% 57% 4% I take responsibility for what I do 13% 43% 3 13% I find good ways to deal with things that are hard in my 13% 39% 17% 3 I feel in control of my life and future 17% 52% 9% 22% I feel good about myself 3 26% 17% 26% 34% 37% 37% 39% 46% 43% 35% 32% 23% 11% 45% 47% 5% 11% 42% 8% 11% 35% 14% 5% 22% 8% 27% 19% 16% 3 8% 11% Describes me a lot/strongly agree Describes me/agree Describes me a little Disagree Does not describe me at all /Strongly disagree Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis Overall, girls appear to have better interpersonal skills than boys. They may be less likely (56% strongly agree) to take initiative than boys (69% strongly agree) when it comes to developing their talents and interests. However, they are more likely (91% strongly agree) than boys (82% strongly agree) to choose friends who support their talents. They are also more likely (92% of girls strongly agree) than boys (81% strongly agree) to find the resources required to improve at their interests. Boys expressed a sense of despondency about searching for required resources. One respondent indicated that he did not even look for training because he knew that he would not be able to raise the funds for tuition. However boys (66% strongly agree) are more likely than girls (53% strongly agree) to seek out parental guidance. Boys (81% strongly agree) outperform girls (52% strongly agree) when it comes to problem-solving capability, and feeling good about themselves. Interestingly, even when it comes to problem solving, boys referred to parental or adult guidance as their preferred route for problem-solving: I consult adults to help me when I face difficult situations even the village headman sometimes. Boys (65% strongly agree) and girls (69% strongly agree) are evenly matched when it comes to being in control of their lives. 38

39 Youth livelihood and interest in agricultural related jobs Most youth (72%) in Mchinji are engaged in some form of activity. In terms of the gender split, there is a 75% / 77%, male / female split, respectively. Almost all youth (68%) are engaged in seasonal or irregular activities. Most youth are being paid less than 3500 MK (9.72 USD 25 ) per month. There are more girls than boys who earn this amount. In fact 52% of all girls, compared with 48% of all boys, earn this income. 25 Exchange rate as at 13 February

40 Figure 9: Salary range of the Mchinji sample Involvement in activity (n=130) Type of activity (n=130) Remuneration count (n=130) Male 75% 50 Work in a formal enterprise % 36% % 52% % 17 Seasonal or irregular activities 54% 48 46% , , % 44 Volunteer 25% , Female 23% 13 Other 17,500 21,000 Above Yes No Male Female Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 40

41 In terms of interest, 89% of all youth surveyed indicated a firm interest in pursuing agricultural employment. There was also an equal number of girls and boys who indicated a lack of interest in agriculture. In agriculture, the year olds chose the following jobs in order of preference: farming, agro-dealing and beekeeping. This corresponds with interests expressed during the focus group discussions. Youth mentioned a keen interest in growing groundnuts, beans, pigeon peas, rice, potatoes and cassava because they get quick money especially when the Acquiring knowledge on modern farming methods would help us explore desirable job opportunities. Focus group crops do not require fertilizer, like beans and pigeon peas 26. Additional interests included the processing of cooking oil from groundnuts, as well as the agro-dealer trade (buying and selling groundnuts and soya, in particular). Youth outlined three groups of resources required to excel in the identified trades: (i) financial resources; (ii) skills; and (iii) self-organization. From a skills perspective, they spoke specifically about: Knowledge and skills in good husbandry practices; Knowledge in agro-processing (e.g. grading oil from groundnuts); Training in agribusiness skills; Guidance and advice from others. Lastly, on the recognized need for self-organization, it is encouraging to see the prevalence of youth clubs in Mchinji. There are 97 out-of-school youth clubs in Mchinji 27, although the socio-economic profile acknowledges that certain traditional 26 Youth focus groups, Mchinji District Assembly, Socio-Economic Profile, , page

42 authorities are under-subscribed in terms of youth clubs. In addition, 48% 28 of youth club members are female. Parents generally supported the idea of their children pursuing opportunities in agriculture. This was largely because (i) they wanted the youth to be independent and (ii) agriculture is considered a means of safe-guarding youth from self-destructive behaviour. However, they did recognize that the youth were hindered from participating in agricultural activities because of a lack of land, finance, inputs and tools. Parents were not always convinced that youth were interested in pursuing agricultural opportunities. Specifically, they felt that youth avoided agriculture because it was not considered sufficiently profitable. This was attributed in part to the decline of the tobacco industry. In addition, campaigns for the eradication of child labour on farms had made the youth reluctant to perform farm work. It must also be acknowledged that there were lone voices that discouraged youth from participation in agricultural activities, citing a preference for carpentry or tailoring. 28 Mchinji District Assembly, Socio-Economic Profile, , page

43 Figure 10: Youth s interest in agriculture and activities of interest in Mchinji 35 Interest in employment opportunities in the agricultural sector (n=62) Types of jobs which fit interest (n=62) Farming (producing agricultural commodities) 37% 63% Stock breeding 32% 68% Beekeeping 61% 27 39% % Fishing 24% 5 76% 16 Agro dealing (buying and selling agricultural commodities 61% 28 39% 18 36% Be employed in a commercial farm 36% 8 64% Work in a processing unit for agricultural products 62% 16 38% 10 Yes Male Female No Serve as an extension agent 38% 63% 15 9 Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 43

44 Ntchisi youth profile Ntchisi district is located in the Central region of Malawi, 96 km north of Lilongwe. It has a population density 29 of 128 persons per km 2, which is higher than the national average (101 persons per km 2 ). Overall, the district s population is 212,000 and over 48% of the population is under 18. Whilst the total fertility rate has slowed, it is still above (compared to an average national rate of ). The Ntchisi District Assembly attributes this high fertility rate to the fact that Ntchisi is the only district in the country that has the lowest median age of 17 when women can marry, against a national median age of 18, due to high poverty and illiteracy levels and cultural practices. The district development plan also outlines: (i) food insecurity (issue 1 in order of importance); (ii) poor quality education (issue 3); and (iii) low income levels (issue 7) as key development challenges. The average per capita monthly income 30 is K 2,408 (US $19.62), compared with the national average of K 3,500 (US $28). Functional literacy is estimated at 61%; the district development plan aspires to increase the functional literacy to 7. The team surveyed a total of 108 youth (62 male, 42 female) in Ntchisi across three extension planning areas: Chikwatula, Kalira and Kasakula. The traditional authorities were Nthondo, Kasakula and Chikho. Ten focus groups discussions were completed: five with youth and five with parents. The following section discusses the survey and focus groups findings, including the assets, interest and challenges of the two cohorts of youth, namely the age group and the age group. Part 1: Cohort profile for the age group: assets, interests and challenges This part is structured around three subsections: 29 Ntchisi District Assembly, Ntchisi District Development Plan, , page Ntchisi District Assembly, Ntchisi District Development Plan, , page

45 Educational assets; Developmental Assets Profile (DAP); Interest in going (back) to school. Educational assets In Ntchisi, 86% of the surveyed year olds had not completed primary school. Interestingly, the gender split was equal 43% of the group were girls, and 43% were boys. Only 1 of the group had completed primary school, with an equal gender split. Figure 11: Educational attainment of the 12 to 14 age group in Ntchisi Educational level_ntchisi_12-14, (n=21) 86% Male Female 43% 43% 1 5% 5% 5% 5% None Primary not completed Primary completed Secondary not completed Secondary completed Non-formal vocational training not completed Non-formal vocational training completed Vocational training not completed Vocational training completed Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis At the primary school level, the development plan 31 attributes poor educational outcomes to three main issues: 31 Ntchisi District Assembly, Ntchisi District Development Plan, , page

46 Low classroom availability only 6 of the classroom facilities are permanent; School over-crowding or inadequate school facilities the pupil:seat ratio is 3:1; Cultural practices the society in Ntchisi practises early marriage, with a median age of 17 for marriage, among girls. General challenges across the schooling system include poor supply of learning materials and poor school management. In terms of competence in written and spoken English, 81% of surveyed year old students in Ntchisi believe that they do not possess any competence. Figure 12: Language skills of the 12 to 14 age group in Ntchisi Language skills (Spoken English), (n=21) 81% Language skills (Written English), (n=21) 81% 33% 38% 48% 14% 14% 43% 1 5% 5% 5% 5% No competence Basic Average Good Excellent No competence Basic Average Good Excellent Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 46

47 Developmental Assets Profile (DAP) The figure below illustrates the findings of the DAP for the 12 to 14 age group, by gender. These findings are an indication of how the youth feel, overall, about the different questions. Figure 13: DAP results of the cohort in Ntchisi DAP results_12-14, Girls (n=10) DAP results_(12-14)_boys (n=11) I take the initiative to develop my talents and interests 39% 17% 17% 26% 53% 16% 5% 26% I ask adults for guidance and help on pursuing my talents 32% 21% 25% 21% 4% I choose friends who support or help me develop my talent 3 61% 4% 4% I m good at finding the resources I need to get better at 35% 57% 4% I take responsibility for what I do 13% 43% 3 13% I find good ways to deal with things that are hard in my 13% 39% 17% 3 I feel in control of my life and future 17% 52% 9% 22% I feel good about myself 3 26% 17% 26% 34% 37% 37% 39% 46% 43% 35% 32% 23% 11% 45% 47% 5% 11% 42% 8% 11% 35% 14% 5% 22% 8% 27% 19% 16% 3 8% 11% Describes me a lot/strongly agree Describes me/agree Describes me a little Disagree Does not describe me at all /Strongly disagree Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 47

48 Overall, year old boys outperform the girls across all dimensions of the development asset profile, except for three. Girls (91% strongly agree/agree) are far more likely than boys (82% strongly agree/agree) to choose friends who support them or help them to develop. This may be corroborated by statements made by parents during focus group discussions that there is a Pull Down Syndrome which then poses a threat to the youth who want to do something with their lives. The socio-economic profile describes substance and alcohol abuse as factors affecting school-going youth. During the survey, girls appeared more thoughtful about friendship choices: I choose my friends based on their behavior, preferring the well-behaved ones ; I avoid choosing friends with bad behavior to avoid being beaten by a father who has warned against having bad friends. Girls (92%) are also more likely than boys (84%) to agree/strongly agree that they are good at finding resources to support their interests and talents. Most interestingly, girls (69% strongly agree/agree) are also more likely (although only marginally) than boys (65% strongly agree/agree) to express a feeling of control over their lives. This is quite surprising given the gender-based violence reported in the district development plan 32. This includes domestic violence (68 cases reported between 2005 and 2008), rape (32 cases reported cases between 2005 and 2008) and initiation of virgins. Interest in going (back) to school The results show lacklustre interest from both girls and boys about returning to school, with 5 of both sexes indicating that they have no interest in returning to school. Youth cited a myriad of reasons for why they are not in school and why they do not intend to go back to school: Because of poverty, it is very hard for parents to support their own children. Parent in Ntchisi 32 Ntchisi District Assembly, Ntchisi District Development Plan, , page

49 Parental pressure: Parents spoke about their peers pressuring children to stay at home, as opposed to going to school. There was also mention of parents overworking their school-going children by expecting them to work in the field, as well as perform household chores. These fatigued children gradually lose interest in school and eventually drop-out. Teacher hostility: Teachers are reportedly keeping children out of school by sending them home if they don t have school uniforms. Teachers also allegedly mock elderly students. This discourages them from going to school, preferring to work in the field instead. Lack of financial resources: Parents and children lament a lack of resources, primarily for secondary school school fees, as well as for after-school training. Early school dropout stirred by several factors (such as abuse from parents and shouldering family responsibilities) prevents the youth from succeeding, since they are not equipped with the necessary skills to pursue ventures that would enable them to succeed in life. Parent in Ntchisi Early parental death: Child-headed households are prevalent in Ntchisi, particularly because of HIV & AIDS. There is currently a 14% prevalence of HIV & AIDS within Mchinji. There are an estimated 21,207 child orphans. Orphaned children are often unable to go to school, as they are left to shoulder the responsibility of parenting their siblings. 49

50 Figure 14: Youth s interest in education in Ntchisi Interest in going (back) to school_ (n=21) Training interest (n=21) Male General education Vocational training 75% 3 25% 1 43% 57% 6 8 Female 5 1 No preference Yes No Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis Part 2: Cohort profile for the age group: assets, current livelihoods, interests and challenges This part is structured around two subsections: Educational assets and Developmental Assets Profile (DAP); Current youth livelihoods and interests. Educational assets and DAP findings At 16% and 2%, respectively, the primary and secondary school completion rates are very low for the year old cohort. Female school completion lags at the secondary school level, with no girls recording completion, compared with 2% of boys. 50

51 Figure 15: Educational attainment of the 15 to 18 age group in Ntchisi Educational level_mchinji_15-18, (n=87) 53% Male Female 28% 28% 25% 16% 8% 21% 8% 7% 2% 2% None Primary not completed Primary completed Secondary not completed Secondary completed Non-formal vocational training not completed Non-formal vocational training completed Vocational training not completed Vocational training completed Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis The district development plan 33 indicates that at the secondary school level, 68% of teachers are unqualified. Secondary schools are also beset with broad challenges, such as the low supply of learning materials, as well as poor school management. Poor female participation is likely attributable to cultural practices, in particular, early marriages. Again, the district development plan mentions that the median age for young girls to get married is 17. This is consistent with national statistics 34, which indicate that one in four girls (15 to 19 years) are married, compared to less than 2% of boys. 33 Ntchisi District Assembly, Ntchisi District Development Plan, , page Ibid. 51

52 Figure 16: Language skills of the 15 to 18 age group in Ntchisi Language skills (Spoken English), (n=87) 51% Language skills (Written English), (n=87) 46% 26% 26% 28% 2 17% 17% 24% 8% 9% 7% 5% 2% 3% 1% 1% 1% 2 11% 11% 1 6% 6% 6% 5% 2% 2% No competence Basic Average Good Excellent No competence Basic Average Good Excellent Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis In terms of competency in English, the sample in Ntchisi showed similar lack of competence in both spoken and written English. The figure below illustrates the findings of the DAP for the 15 to 18 year old age group, by gender. Overall scores have been calculated, and are 58% for the girls and 62% for the boys. These scores are an indication of how the youth feel, overall (i.e. 10 represents a best describes me / strongly agree across all questions). 52

53 Figure 17: DAP results of the cohort in Ntchisi DAP results_15-18, Girls (n=36) I take the initiative to develop my talents and interests 29% 29% 1 32% I ask adults for guidance and help on pursuing my talents 23% 34% 2 23% I choose friends who support or help me develop my talent 29% 39% 16% 16% I m good at finding the resources I need to get better at 39% 55% 3% 3% I take responsibility for what I do 45% 29% 13% 13% 4 31% 28% 34% 3 DAP results_15-18, Boys (n=51) 26% 8% 26% 4 2 9% 62% 2% 8% 64% 2% 5 12% 8% I find good ways to deal with things that are hard in my 26% 23% 13% 39% 26% 4 18% 16% I feel in control of my life and future 26% 39% 1 26% I feel good about myself 29% 21% 32% 18% 2 16% 32% 32% 16% 24% 31% 29% Describes me a lot/strongly agree Describes me/agree Describes me a little Disagree Does not describe me at all /Strongly disagree Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 53

54 Boys (66% strongly agree/agree) consider themselves to be more proactive than girls (58% strongly agree/agree) when it comes to taking the initiative to develop their talents and interests. Girls made comments such as: I do not believe that I have talents and capabilities or people in the village are not supportive of my talents. Boys (9 agree/ strongly agree) are also more likely than girls (68% agree/strongly agree) to choose friends who support them or help them develop their talents. Most interesting is that girls often link good behaviour with a lack of association with men. I do not want to be influenced into bad behaviour; therefore I choose friends who do not associate with men". Boys, on the other hand, choose friends who will help them with knowledge and resources. Boys (98% strongly agree/agree) and girls (94% strongly agree/agree) are fairly well matched when it comes to their ability to find resources. Boys (66% agree/strongly agree) also consider themselves better problem solvers than girls (49% agree/strongly agree). Both sexes are involved in casual labour as a means of acquiring resources. They also both seek support from friends and family. Boys (8 agree/strongly agree) also feel they are slightly more accountable than girls (74% agree/strongly agree). Girls are less likely than boys to ask adults for guidance. A girl spoke about how she Does not trust her parents, who wanted her to get married. However, girls (65%) are more likely than boys (52%) to feel in control of their lives and future, and also more likely to feel good about themselves. For both sexes, feeling good was a function of access to education and resources, while feeling bad was related to being poor. Youth livelihoods and interest in agricultural related jobs Overall, more boys (37%) than girls (24%) are involved in activities. Most youth are involved in seasonal or irregular activities. Thirty-one percent of all youth are being remunerated in the <3500MK (9.72 USD) bracket, whilst 14% are being remunerated in the 3500MK-7000MK (9.72 USD-19.44USD) bracket per month. 54

55 Figure 18: Salary range of the Ntchisi sample Involvement in activity (n=108) Type of activity (n=108) Remuneration count (n=108) Male 67% 40 Work in a formal enterprise % 27% % 20 Seasonal or irregular activities 43% 57% , , % 26 Volunteer , Female 37% 15 Other 17,500 21,000 Above Yes No Male Female Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 55

56 The graphic below illustrates activities of interest to the Ntchisi sample. Figure 19: Youth s interest in agriculture and activities of interest in Ntchisi 41 Interest in employment opportunities in the agricultural sector (n=87) Types of jobs which fit interest (n=87) Farming (producing agricultural commodities) 36% 64% Stock breeding 39% 61% Beekeeping 61% 27 39% 17 63% Fishing 32% 6 68% 13 Agro dealing (buying and selling agricultural commodities 62% 24 38% 15 37% 9 9 Be employed in a commercial farm 33% 9 67% Work in a processing unit for agricultural products 58% 18 42% 13 Yes Male Female No Serve as an extension agent 42% 58% Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 56

57 Overall, 75% of youth in Ntchisi expressed an interest in agricultural employment opportunities. Specifically, and in order of preference, they were interested in: (i) farming; (ii) stock-breeding; (iii) beekeeping; and (iv) agro-dealing. In focus group discussions, youth confirmed an interest in agriculture. Specifically, they showed an interest in three areas: Production: Interest in managing farms, doing farm work, taking care of livestock (chickens35, goats, pigs and cattle). Youth expressed a specific interest in driving farming machinery. Some youth mentioned an interest in fish-farming. There was also mention of farming in dimbas (small family gardens usually located nearby the home). Value addition: Processing cooking oil from groundnuts and sunflower seeds. Agro-dealing: Buying and selling groundnuts and soya. Extension agent roles: several youth expressed interest, because it would make them proud to provide a service to their community. They also believe that this job would enhance their exposure and experience in farming, thereby making them better farmers. There was also indication of gender preferences, with girls being biased towards groundnut production, whilst boys were biased towards growing maize, fishing and stock breeding. Interestingly, youth also elaborated on the reasons why they did not find employment. Firstly, they felt that employers were cautious about employing youth, because of labour laws, which prohibit child labour. In addition, youth explained how experience was a pre-requisite for many job opportunities. This was problematic for youth, as they often applied for work after completing secondary school and did not have work experience. Lastly, youth spoke of corruption and nepotism. It appears that employers often give preference to people who come from their tribes or who are related to them. 35 Youth indicated a preference for poultry because profits are realized a lot faster than in cattle farming, feed is also more easily accessible. 57

58 Parents also bemoan gender bias in the hiring process. They specifically mention that some employers are gender biased and prefer not to hire women because they are not considered to be hard working. Rumphi youth profile Rumphi is a district in the northern part of Malawi, approximately 435 km north of Lilongwe. In 2008, the population of Rumphi was estimated at 169,112 36, which represented approximately 1.3% of the national population. The average annual population growth rate is 2.8%, which is equivalent to the national rate. Population density is 35 persons per km 2. This is approximately one-third of the population density in Ntchisi (128 people/km 2 ) and Mchinji (136 people/km 2 ). The population is also very young. In 2008, 44% of the population was younger than 15 years of age. The total fertility rate was estimated at 5.6 (~6) in The labour force is predominantly unskilled and works in the agricultural and informal fishing sectors. In agriculture, the labourers are often contract labourers on tobacco farms. Whilst there are no official unemployment statistics for youth in Rumphi, the socio-economic profile estimates that unemployment for the age group sits at 9% 37. The socio-economic profile outlines three key challenges faced by youth. These include: (i) failure to continue education; (ii) child work; and (iii) unemployment. The team surveyed a total of 110 youth (65 male, 45 female) in Rumphi across three extension planning areas: Mhuju, Ntchenachena and Chiweta and three traditional authorities: Mwahenga, Mwalwenin, and Mwankhunikira. Six focus groups discussions were completed: three youth and three parent focus groups. The following section discusses the survey and focus group findings, exploring the assets, interests and challenges of the two cohorts of youth, namely the age group and the age group. 36 Rumphi District Assembly, Rumphi district development plan, 2009, page Rumphi District Assembly, Rumphi district development plan, 2009, page

59 Part 1: Cohort profile for the age group: assets, interests and challenges This part is structured around three subsections: Educational assets; Developmental Assets Profile (DAP); Interest in going (back) to school. Educational assets findings Only 8% of youth in this age band had completed primary school education. 62% of the youth who have not completed primary education are girls. Figure 20: Educational attainment of the 12 to 14 age group in Rumphi Educational level_rumphi_12-14, (n=13) 92% 31% Male Female 62% 8% 8% None Primary not completed Primary completed Secondary not completed Secondary completed Non-formal vocational training not completed Non-formal vocational training completed Vocational training not completed Vocational training completed Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 59

60 This is consistent with the primary school pass rates indicated in the socio-development plan. In 2007, whilst 72% 38 of all boys who sat for the primary school leaving certificate passed, only 57% of the girls who sat for the same certificate passed. The district development plan 39 outlines inadequate education infrastructure (specifically classroom blocks and teachers houses) as well as limited supply of learning and teaching materials as key constraints in supplying quality education. Again, poor competency in written and spoken English as shown in the figure below, attests to poor educational outcomes in the primary school education system in Malawi. Figure 21: Language skills of the 12 to 14 age group in Rumphi Language skills (Spoken English), (n=13) 69% Language skills (Written English), (n=13) 69% 38% 38% 23% 23% 31% 23% 8% 8% 31% 23% 8% 8% No competence Basic Average Good Excellent No competence Basic Average Good Excellent Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 38 Rumphi District Assembly, Socio-economic plan, 2009, page Rumphi District Council, District Development Council, , page 4. 60

61 Developmental Assets Profile findings The figure below illustrates the finding of the DAP for the 12 to 14 age group by gender. Overall scores have been calculated, and are 38% for the girls and 33% for the boys. These scores are an indication of how the youth feel, overall (i.e. 10 represents a best describes me / strongly agree across all questions). 61

62 Figure 22: DAP results of the cohort in Rumphi DAP results_12-14, Girls (n=8) DAP results_(12-14)_boys (n=5) I take the initiative to develop my talents and interests 13% 25% 63% 8 2 I ask adults for guidance and help on pursuing my talents 8% 15% 46% 31% I choose friends who support or help me develop my talent 13% 25% 5 13% 8 2 I m good at finding the resources I need to get better at 13% 63% 25% I take responsibility for what I do 25% 5 25% I find good ways to deal with things that are hard in my 13% 38% 25% 25% 2 8 I feel in control of my life and future 13% 38% 13% 38% I feel good about myself 13% 13% 13% 63% Describes me a lot/strongly agree Describes me/agree Describes me a little Disagree Does not describe me at all /Strongly disagree Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 62

63 Both sexes score very badly. When it comes to taking initiative, 8 of boys strongly agree that they do this in order to develop their talents and interests, compared with 38% of girls. The same percentage of girls and boys choose friends who support them and help them to develop their talents. Boys are also more likely to take responsibility for what they do, with 4 of them agreeing/strongly agreeing compared with 25% of girls. Boys (3 agree or strongly agree) are also more likely than girls (23% agree or strongly agree) to ask for guidance from adults on pursuing their talents and interests. Again, girls appear disillusioned about the extent to which adults are prepared to assist them in pursuing their dreams, citing that: I told my older brother about my career, but was never helped. Girls (76% agree or strongly agree) consider themselves better at finding resources than boys (6 agree or strongly agree). Girls appear better at problem-solving than boys, with 51% of girls, compared with of boys agreeing or strongly agreeing that they find good ways to deal with things that are hard. Boys appear quite disempowered by their poverty. They feel that they cannot find ways to deal with difficulties effectively because of poverty. In instances when both sexes were not in school, girls were hopeful about returning to school and accomplishing their goals, whilst boys felt that they had no prospects because they had dropped out of school. Twenty-six percent of girls agree or strongly agree that they feel good about themselves, compared with no boys. Youth interest in going (back) to school The majority of youth in this cohort showed a keen interest in going back to school. Eighty-five percent of the survey respondents indicated that they were interested in going back to school (5 boys and 6 girls). The two surveyed girls did not express an interest in going back to school. 63

64 Figure 23: Youth interest in education in Rumphi Interest in going (back) to school_ (n=13) Training interest (n=13) Yes 45% 55% 5 6 General education Vocational training % 44% 4 5 No 0 No preference Male Female Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis Poor interest in education from the female youth is unsurprising given the high primary school drop-out rate of girls in the district. There were 27, girls enrolled in primary school in The focus groups shed some light on key reasons why youth drop-out of school, and why they are sometimes not at school at all: Limited parental guidance: Parents admitted that they are not always attentive, and that they do not follow up when their children s school performance is poor. Parents also admitted that they did not necessarily consider school extremely important. Poor role-modeling: Youth have very few positive role models, and are thus less motivated to work hard. Parents also lament youth exposure to peer pressure, which results in youth smoking and drinking instead of focusing on their school work. Parents also feel that there are insufficient youth community centres 40 Rumphi District Council, District Development Council, , page

65 where youth can engage in productive behaviour. Thus, the youth end up engaging in bad behavior, which impacts them negatively. Financial and physical barriers to school entry: Parents and youth, alike, complained about how primary and secondary schools are located very far away, making it difficult for youth to access schools. This was confirmed by the socio-economic profile, which showed that the top four travelling distances to schools were found in the traditional authorities (TA) Mwahenga, Mwalweni and Mwankhunikira, 25 minutes41, 30 minutes and 35 minutes, respectively. These are the same TAs that were surveyed in Rumphi. From a financial perspective, youth argue that they lack the financial resources to purchase schooling materials, uniforms and stationery, making it difficult for them to attend school. Early marriages and teenage pregnancies: The focus groups revealed that early marriages were welcomed and encouraged, as they are a source of benefit and respect for parents. Parents are reported to sometimes force their daughters to get married for financial benefit. In addition to early marriages, there are alleged incidences of rape. Young girls get pregnant, and because of a lack of access to birth control (contraceptive prevalence was % in 2005/2005), as well as anti-abortion legislation, they have children and are then unable to go back to school. Prevalent harmful child work: Parents argue that their peers sometimes overwork children on the farm. This results in youth missing school and eventually dropping out of school. There has also been an increase in the number of child abuse cases43 recorded at the social welfare offices related to child labour and child trafficking economic exploitation. 41 Rumphi District Council, District Development Council, , page Rumphi District Council, District Development Council, , page Rumphi District Council, District Development Council, , page

66 Part 2: Cohort profile for the age group: assets, current livelihood, interests and challenges This part is structured around two subsections: Educational assets and Developmental Assets Profile (DAP); Current youth livelihoods and interests. Educational assets and DAP findings There were 62 youth surveyed in the year age group. Of this group, 41 (66%) had not completed primary school or secondary school. In terms of the gender split, of the total respondents, 66% were males who did not complete primary education, 27% were females who did not complete their primary education. There were similar statistics for secondary education completion. All those that completed secondary education or vocational training are males. 66

67 Figure 24: Educational attainment of the age group in Rumphi Educational level_mchinji_15-18, (n=62) 66% 66% Male Female 39% 39% 27% 13% 27% 3% 3% 8% 5% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% None Primary not completed Primary completed Secondary not completed Secondary completed Non-formal vocational training not completed Non-formal vocational training completed Vocational training not completed Vocational training completed Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis In terms of proficiency in English, 65% of all respondents indicated that they had no competence in spoken English. This is compared with 33% of respondents who did not have competency in written English. An additional 33% indicated that they had basic competency in written English. Compared with the other two districts, youth in Rumphi have lower competence in written English. 67

68 Figure 25: Language skills of the age group in Rumphi Language skills (Spoken English), (n=62) 65% Language skills (Written English), (n=62) 33% 33% 5 15% 45% 19% 25% 2 16% 19% 31% 26% 19% 6% 6% 3% 3% 3% 3% 8% 18% 13% 9% 7% 7% 5% 2% 2% No competence Basic Average Good Excellent No competence Basic Average Good Excellent Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis It is important to reflect on some of the challenges in delivering secondary school education in Rumphi. The socio-economic profile 44 reveals a range of statistics, which point to poor delivery of education in the traditional authorities under question. The pupil to classroom ratio is higher than the recommended ratio of 1:60. It is 1:96, 1:74 and 1:64 in Mwahenga, Mwalweni and Mwankhunikira, respectively. Mwahenga has the highest pupil to desk ratio; it sits at 10:1, compared with 4:1 in Mwalweni and 3:1 in Mwankhunikira. In terms of trained personnel, the recommended standard is 1:60. However, in 2007, it was 1:62, 1:71 and 1:57 in Mwahenga, Mwalweni and Mwankhunikira, respectively. 44 Rumphi District Council, District Development Council, , page

69 The figure below illustrates the findings of the DAP for the 12 to 14 age group, by gender. Overall scores have been calculated, and are 55% for the girls and 64% for the boys. These scores are an indication of how the youth feel, overall (i.e. 10 represents a best describes me / strongly agree across all questions). Figure 26: DAP results of the cohort in Rumphi DAP results_15-18, Girls (n=37) DAP results_15-18, Boys (n=60) I take the initiative to develop my talents and interests 41% 22% 11% 27% 41% 29% 11% 2 I ask adults for guidance and help on pursuing my talents 26% 4 17% 17% 27% 42% 17% 14% I choose friends who support or help me develop my talent 22% 51% 5% 22% I m good at finding the resources I need to get better at 27% 62% 8% 3% 38% 38% 48% 4% 11% 54% 4% I take responsibility for what I do 28% 28% 28% 17% 32% 45% 13% 11% I find good ways to deal with things that are hard in my 27% 24% 3 19% 23% 36% 36% 6% I feel in control of my life and future 19% 3 19% 32% 23% 39% 27% 11% I feel good about myself 14% 22% 3 35% 23% % Describes me a lot/strongly agree Describes me/agree Describes me a little Disagree Does not describe me at all /Strongly disagree Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 69

70 In the year old cohort, boys outscored the girls across every indicator. Boys (62% agree/strongly agree) felt far more in control of their lives than girls (49%). Boys (53% agree/strongly agree) also feel better about themselves than girls (36% agree/strongly agree). A girl expressed unhappiness about her life because she had become a parent at a young age and, as a result, faced challenges she felt she was unable to overcome. A boy spoke about how he felt in control because he practiced safe sex with his girlfriend, and engaged in casual labour. Boys (87% agree/strongly agree) also consider themselves more accountable than girls (56% agree/strongly agree). However, the responses indicate that both boys and girls are also of the impression that they are too young to recognize their errors. Lastly, boys (86% agree/strongly agree) are also more likely than girls (73% agree/strongly agree) to choose friends who support them to develop their talents. Youth livelihood and interest in agricultural-related jobs The bulk of the youth in the year old category are involved in seasonal or irregular activity, such as farming and construction support (56%). Their monthly remuneration is clustered around the 0MK -3500MK range (45%) as well as the 3500MK-7000MK bracket (2%). 70

71 Figure 27: Salary range of the Rumphi sample Involvement in activity (n=110) Type of activity (n=110) Remuneration count (n=110) Male 77% 47 Work in a formal enterprise % 52% 48% 77% % 14 Seasonal or irregular activities 34% 66% , , % 25 Volunteer , Female 44% 20 Other 17,500 21,000 Above Yes No Male Female Male Female Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 71

72 Overall, youth expressed a keen interest in employment in agriculture. In order of preference, boys preferred: stock-breeding (~43%), farming (~4) and agro-dealing (~28%), whilst girls preferred stock-breeding (~26%), farming (~23%) and agro-dealing (~21%). Figure 28: Youth s interest agriculture and activities of interest in Rumphi 44 Interest in employment opportunities in the agricultural sector (n=87) Types of jobs which fit interest (n=87) Farming (producing agricultural commodities) 36% 64% Stock breeding 38% 62% Beekeeping 61% 27 39% 17 6 Fishing 28% 5 72% 13 4 Agro dealing (buying and selling agricultural commodities 61% 28 39% Be employed in a commercial farm 54% 15 46% 13 58% 42% Work in a processing unit for agricultural products 63% 19 37% 11 Yes Male Female No Serve as an extension agent 39% 61% Male Female During focus group discussions, nearly all parents indicated that they would prefer it if the youth went back to school before pursuing a full-time career in the agricultural sector. This is because they felt the knowledge gained made them better performers in the agricultural sector. The youth expressed interest in the following sectors: Production: Youth cited an abundance of land and good soils as the reason for production preference. Specifically, they showed interest in groundnuts and beans because they did not require fertilizer. In addition, there was an interest in growing cabbage, Irish potatoes and tomatoes because they are profitable. There was also mention of coffee, particularly because of its profitability. However, youth also had concerns about market access, particularly when it came to cow s milk, groundnuts, maize and soybeans, which are value chains with high job creation potential for the youth, but with post-production stage challenges. 72

73 Stock-breeding: The interest shown here was specifically with breeding pigs, cattle, goats and chicken (both eggs45 and meat). Extension services: Some youth expressed interest in being extension agents so that they could educate people about the importance of growing trees and reclaiming the lost forests in the area. The profiles in this chapter present not only the opportunities to build on the interests of youth, but also the challenges Youth in Action will need to consider in supporting the integration of youth into sustainable employment opportunities across high-potential agricultural value chains. As such, youth employment opportunities should be considered within the youth s context and that of the impact area. Section 5 takes an indepth look at enterprise development and direct employment opportunities as potential mechanisms, which, if harnessed, can increase skills, development and youth livelihoods. 45 Available market at University of Livingstonia and Phwezi Technical College (Youth surveys, 21 January-1 February). 73

74 SECTION 5 Assessment of income- generating opportunities through direct employment and enterprise development Given the goal of integrating youth into high-potential value chains that will sustainably improve their livelihoods, it is imperative to understand the opportunities and challenges youth face in accessing direct employment in the private sector and enterprise development along specific value chains.46,47 Understanding these opportunities will allow SC to focus its interventions in areas that will allow youth to maximize employment opportunities within the impact area. This section begins by assessing the ability of the private sector to directly employ youth, skills expectations and the job creation outlook within the impact area, followed by an analysis of high-potential value chains that will be most suitable for enterprise development within the impact area. 46 A value chain is defined as a set of activities undertaken to bring an agricultural commodity from conception to the consumer; each step along the chain adds value to the specific product and / or commodity. 47 For the purposes of this study, employment is defined as opportunities (direct or through self-employment) in which youth can generate cash income in the formal or informal sectors. 74

75 Direct employment opportunity analysis In addition to enterprise development opportunities, employment opportunities within active agricultural businesses were explored as viable livelihood options for youth. The African Development Bank surveyed the Malawian private sector in and reported that the majority of skilled labour is employed by the formal sector. However, this only represents 12% of the employment market. The public sector is the largest employer, employing at least half of these workers. Urban unemployment has risen from 1% in 1998 to 9.4% in This is largely due to firm downsizing, public service restructuring and urbanization (estimated at 6.3% in 2008). The National Youth Policy 49 ascribes high youth unemployment to poor youth training capacity within Malawi. Youth are considered unemployable due to a limited number of training centres. This view is substantiated by the ILO youth survey 50. Fifty-six percent of rural and 46% of urban youth said that requirements for jobs were higher than education /training received was the main reason why they were unemployed. This part discusses the specific findings within the target districts. It is subdivided into five sections: Overview of surveyed enterprises; Overview of currently available entry-level jobs, requirements for jobs and future employment prospects in each job; Remuneration for entry level positions; Life and interpersonal skills sought by employers; Employer interest in partnering with SC and potential support that can be provided. 48 African Development Bank Group, Skills for private sector development, Ministry of Youth and Sports, National Youth Policy, International Labour Organisation, School to work transition survey,

76 Overview of surveyed enterprises Nineteen enterprises were surveyed in Malawi, most of which are in the agro-dealing industry, followed by agricultural service providers, commercial farms and sales. The following table provides a description of the surveyed enterprises. Table 1: Key facts on employers in the target districts Number of enterprises surveyed Total sample 19 Enterprises located in Mchinji 7 Enterprises located in Ntchisi 5 Enterprises located in Lilongwe 6 Size of workforce Number of full-time salaried employees 418* Number of part-time salaried employees 4029** Number of employees below Employment prospects until 2017 Estimated need for entry-level positions within the next 5 years 124 Notes: *400 of the full-time salaried employees are employed by Exagris, **4000 of the part-time salaried employees are from Exagris 76

77 Source: Employer survey The most common employment type is part-time or seasonal employment. There are also very few employees (5% of full-time salaried employees) below the age of 24. Characteristics of current and further entry-level job opportunities, requirements and qualifications All entry-level positions require employees to be at least 18 years old. Required education levels are illustrated in the table below. Table 2: Entry level jobs and requirements Entry level jobs Number of jobs filled per year Minimum age Minimum diploma required Accountant 1 30 Secondary completed Accounts Vocational training completed Administration 5 19 Vocational training completed Branch porter 4 20 Secondary not completed Buyers Secondary not completed Cashier 1 18 Secondary completed Cashier 5 20 Secondary completed Casual labourers None 77

78 Entry level jobs Number of jobs filled per year Minimum age Minimum diploma required Casual labourers None Casual labourers None Clerk 2 19 Secondary completed Clerk 5 20 Secondary completed Clerk 1 18 Secondary completed Clerk 1 30 Secondary completed Clerk 1 21 Secondary completed Data entry officer 1 25 Secondary completed Guards 2 25 Secondary not completed Loaders 6 20 Secondary not completed Office assistant 2 18 Secondary not completed Porter 3 20 Secondary not completed Porter 5 20 Secondary not completed Porter 8 20 None 78

79 Entry level jobs Number of jobs filled per year Minimum age Minimum diploma required Porter 4 20 Secondary not completed Porter 4 18 Secondary not completed Security 1 40 Primary completed Security guards 1 20 Primary completed Security guards 3 35 Secondary not completed Security guards 3 35 Secondary not completed Security guards 7 25 Secondary not completed Security personnel 3 18 Secondary not completed Shop assistant 1 25 Secondary not completed Stitching boy 1 20 None Tally Clerk 1 25 Secondary completed Ware house assistant 3 20 Secondary completed Source: Employer survey There does not appear to be consistency across different companies about the minimum age for entry-level employment. The average age is approximately 23 years. There is, however, consistency across the board about the minimum qualifications 79

80 required for entry-level jobs, which is, primarily, the completion of secondary school education. Across the districts, a total of 169 entry level posts were filled in Figure 29: Existing and projected entry-level jobs by area Existing and projected entry level jobs Mchinji Ntchisi Rumphi Lilongwe 0 No of jobs filled in 2012 No of expected new jobs over next five years Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis On average, companies are looking to hire approximately 77% of 2012 s total hires (i.e. the number of new positions to be filled is, on average, equal to 77% of the total jobs filled in 2012). The most aggressive growth is expected in Rumphi, with 54% of all future expected jobs. At 43% of all current posts, Rumphi is also the district with the highest number of posts filled in The figure below presents the maximum income for each entry-level position. 80

81 Figure 30: Estimated maximum salary level per position The most frequently paid monthly salary is MK 10,500 (~28 USD). This is paid to clerks, security personnel, shop assistants, porters and buyers. The second most frequently earned salary is MK (~57 USD). This is earned by cashiers, clerks, data entry officers and guards. Both amounts are higher than the MK 3500 (~10 USD) which youth are most likely earning on seasonal activities. 81

82 Life and interpersonal skill requirements A comparison of employer requirements in terms of desired skills in youth and their actual assessment of these skills are illustrated in the following figure. Figure 31: Required skills by employers and their rating of these skills in youth Employers ratings on importance of skill(n=20) Employers ratings of youth life skills (n=20) Honesty 78% 22% Responsibility 93% 7% Being able to work independently without much supervision 67% 27% 7% Oral communication skills 7% 13% Planning and decision-making 5 21% 29% Getting along respectfully with people of differing cultu 92% 8% Resolving conflicts in a peaceful way 92% 8% Being able to work as a member of a team 87% 13% Having a caring and helpful attitude Written communication skills Wanting to do excellent work and achieve success Working hard and being engaged in the work 79% 67% % 21% 2 Math skills 59% 18% 24% 5 14% 2 29% 2 25% 25% % 83% 8 86% 71% 8 75% 10 75% % 14% Critical Very Important Somewhat Important Not important Excellent Good Average Poor Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 82

83 Consistently, across every soft and hard skill considered important by employers, expectations are not being met. This is especially the case when it comes to hard skills, such as mathematics and written and oral communications. For mathematics, employers consider 5 of the youth s skills poor, whilst for written communication, 75% are considered average. For verbal communication, 8 of the youth are considered average. Employers were impressed with youth when it came to honesty (5 of employers considered youth excellent) as well as when it came to the youth s ability to work hard and be engaged in the work (4 of employers considered youth excellent). Employers were quite optimistic about the contributions which youth make to the work place, including a certain vibrancy. Specifically, employers spoke about youth being: Energetic and open to new challenges; Quick, which aids the companies development, specifically when it came to sales; Hard working and willing to learn. Employers outlined key challenges in working with youth. There were three recurring themes: 1. Lack of responsibility: As youth often do not have prior work experience, they lack maturity, always requiring supervision. Employers also speak about how youth tend to lose focus when they start earning an income. 2. Lack of physical fitness: As some entry-level posts require carrying heavy loads (e.g. porters), employers find that youth lack the physical ability to manage such tasks. 3. Lack of honesty: Some employers complained about how the youth were dishonest. Employer interest in partnering with Youth in Action Most companies (57%) were interested in partnering with YIA. Their involvement was mostly in the form of job opportunities within their companies, followed by internships and scholarships. Their expectation from SC was that it should provide financial support (such as covering internship stipends, which can be monthly lump sums paid to youth interns YiA could consider a monthly stipend of about US$ 50 per youth) and assist with youth selection. 83

84 Figure 32: Potential partnership support between Youth in Action and private sector employers Question: Would your enterprise be interested in working with Save the Children on youth employment initiatives? What potential support/contributions can your enterprise offer? What support would you expect from a development partner? Mchinji 54% 70 Scholarships 2 2 Financial support 25% 46% 60 Job opportunities 2 5 Ntchisi Beneficiary selection 75% Internships/apprenticeships 6 Rumphi 59% 65 41% 45 Yes No Mchinji Ntchisi Rumphi Lilongwe Mchinji Ntchisi Rumphi Lilongwe Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 84

85 In summary, the survey revealed very limited job prospects in the formal sector within target districts. For prospective jobs, youth would require literacy and numeracy training to meet employer expectations. This is because overall employers expressed a preference for at least average and good English speaking and writing abilities. Employer expectations were also not being met across hard and soft skills, which were important to them. Employers also commented about how youth lacked a sense of responsibility. Enterprise development opportunity analysis The Global Entrepreneurship Monitor 51 (2012) reports that 36% of 18 to 64-year-old Malawians are nascent or new entrepreneurs. This value is higher than the average percentage in sub-saharan Africa (which sits at 28%), Europe (which is 8%) and USA (which is 13%). It is important to note that 42% of those businesses are necessity driven businesses. Interestingly, 51% of these entrepreneurs in Malawi are female, whilst 34% are male. Entrepreneurs running these businesses do so because they have no other work options and need a source of income. This is compared with 43% opportunitymotivated entrepreneurs, who enter business to exploit an opportunity and to improve their income or independence. A study conducted by the International Labour Organisation 52 on youth unemployment trends in Malawi reported that nearly half of all Malawian youth 53 (45.6%) have engaged in some form of self-employment. In the market assessment we conducted, 62% of the year old youth were engaged in some form of seasonal or irregular activity. This, coupled with data from the Global Entrepreneurship Monitor indicating that only 12% of surveyed year olds had a fear of failing in their entrepreneurial venture, bodes well for the success of enterprise development programs. This section discusses opportunities for youth in the three targeted districts. Part 1 expands on enterprise development opportunities in the high-opportunity value chains, which have been identified in each district. It describes the value chain selection process and also expands on the specific opportunities that have been identified. 51 Global Entrepreneurship Monitor, GEM 2012 Global Report, 2013, page International Labour Organisation, School to work transition survey, Youth are defined as year olds. 85

86 Crop selection methodology for enterprise development To assess production opportunities, the study segments each value chain opportunity into two categories: crop production and additional production opportunities each with a set of assessment criteria. The table below outlines how each value chain opportunity was categorized and its respective assessment criteria. Table 3: Crop selection methodological summary 54 No. Category Value chain opportunity Assessment criteria Cross-cutting criteria 1. Crop production Staple crops District capability + product profitability Input / production requirement Market opportunity Time to harvest Access to finance Access to land Skills requirements Gender equity Risk factors Youth interest 2. Additional production opportunities Fruits Vegetables Apiculture Animal rearing District capability Input / production requirement Market opportunity Time to market Youth s interest 54 Due to lack of consistent production data regarding additional production opportunities in the impact area, product profitability could not be assessed, hence the omission of this assessment criteria. 86

87 To select high-potential value chains, each will be scored across each criterion using a numerical scoring system to quantify value chain opportunities. The numerical scoring system that will be employed is illustrated below: 1 2 Negative Neutral Positive 3 Each value chain was scored with the following questions in mind: Value Chain Questions Input/producton requirements Is there sufficient access to improved input to increase production potential? Will youth have the ability to sustain enterprise development and growth in the mid to long-term given the availability of input / production requirements? Market opportunity Does the commodity have a relatively high wholesale and / or market price? Are prices relatively volatile? Are they increasing? What is the level of competition in the market? Is demand increasing (for raw and processed products)? Youth interest What is the relative interest of youth in the production of the commodity? Access to finance What are the initial / start-up financing requirements to produce each commodity? 87

88 Value Chain Questions How do start-up costs compare relative to other value chains within each category? Access to land What is the land requirement for each value chain opportunity and how does it compare to other value chains within the category? Skill requirements What are the skills required to maximize the production potential of each value chain? Do youth currently possess the necessary skills to quickly harness production potential? Gender equity Which value chains are more likely to integrate girls and minimize gender gaps? Risk factors What are the risk factors across the value chain that should be considered for value chain selection? 55 Other factors What is the best approach to perform the different activities - group vs. individual? What are local stakeholders perspectives on the viability/suitability of proposed activities? 55 Value chain selection considered risk factors up to the production stage of the value chain. 88

89 With these questions in mind, the subsequent sub-sections provide a detailed analysis of each value chain opportunity followed by an assessment summary and scorecard, selecting high-potential value chains. A shortlist of crops was selected based on a combination of methods: stakeholder interviews and validation, crop production levels, and a profitability analysis. The subsequent sections further assess the shortlisted value chains of each crop. Crop profitability analysis and district capability The production level of key commodities in each district provides an indication of the district s capability to produce a particular crop. As the figure below illustrates, maize and cassava are crops that are widely grown across three regions under discussion. Both of these are found in the list of top five most produced crops in Mchinji, Ntchisi and Rumphi. 89

90 Figure 33: Crop production levels across the three districts Based on production levels and consultations with key stakeholders, the following value chains were assessed for profitability: groundnuts, soya-beans, wheat and maize.

91 The figure below ranks food crops by profitability. 56 The profitability data is based on information received from the National Smallholder Farmer s Association of Malawi (NASFAM). NASFAM supports 108,000 farmers and aims to support 200,000 by NASFAM Commercial has a presence in all districts relevant to this study. Specifically it: (i) provides seeds and fertilizer; (ii) provides access to finance through micro-finance institutions and commercial banks; and (iii) provides domestic, regional and international market access. Wheat, maize and soya beans are found in the list of the top ten most profitable crops. Unshelled groundnuts also feature on the list, although in 12th place. Figure 34: Relative Profitability Analysis across key agricultural commodities in Malawi (Malawian Kwacha/Hectare) Crop Profitability analysis Cotton Wheat Rice-polished Chillies Pigeon peas Rice-unpolished Soya Bambara nuts Grams Maize Sesame Groundnuts-unshelled Pearl millet Groundnuts-shelled Chick peas Beans Cowpeas Sunflower Bambara nuts-shelled Sorghum Finger millet Castrol oil Paprika Top ten most profitable crops: 1. Cotton 2. Wheat 3. Polished rice 4. Chillies 5. Pigeon peas 6. Unpolished rice 7. Soya 8. Bambara nuts 9. Grams 10. Maize Gross Margin (MK/ha) Source: NASFAM Gross margin analysis, Dalberg analysis 56 Profitability is defined by assessing net profit (gross revenue minus production costs) that can be generated by each staple crop when cultivated on the same land size. 91

92 The following section provides further analysis to assess each crop across additional assessment criteria. Input / production requirements Access to inputs, such as seed (improved / hybrid seed varieties), chemical fertilizer and insecticide, will be critical in maximizing the production of the shortlisted staple crops. The table below provides input / production requirements and observations for each crop that should be considered for efficient production in the region. Table 4: Staple crop input / production requirement overview Staple crop Input/production requirement Key strengths/opportunities Value chain observations Groundnuts Poor storage techniques lead to large losses before nuts can be brought to market Smallholders use inefficient production techniques which result in low yields ICRISAT offers new seed varieties that could improve yields, however, the upfront cost for seeds is very high, which results in low uptake Poor post-harvest Easily scalable crop, particularly because it is widely grown and adaptable to numerous environments Potential for value addition Local familiarity with the crop Coherence with government s food security policies and National Export Strategy Groundnut s nitrogenfixing properties would Overall, considered a high-value crop if threats are mitigated through: Aflatoxin contamination can be managed with proper training of youth Youth uptake of new seed varieties can also be increased with increased access to finance 92

93 Staple crop Input/production requirement Key strengths/opportunities Value chain observations storage facilities and have a positive spill over, techniques leading to as it would decrease lost output, due to farmer dependence on aflatoxin nitrogen-based fertilizers, which are imported Soya-beans Low yields (0.5 MT/ha), which can be attributed Soya is competitive with maize and cassava from a Overall, considered a high-value crop if to poor quality seeds, nutritional perspective threats are mitigated poor soil fertility and low use of inoculants, low plant density and poor access to technical assistance. Improved seed varieties are seldom used in rural areas. Low on-farm consumption (3) means that the majority of soya reaches the market Simple processing can create oil and milk and other products through: Increased youth access to post harvest storage facilities Increased youth access to training to Farmers are unable to secure the best prices increase yields for soya because of poor storage facilities. Farmers often have to sell early during the season when prices are low. This is also because poor postharvest storage practices result in postharvest losses greater 93

94 Staple crop Input/production requirement Key strengths/opportunities Value chain observations than the price compensation Wheat Poor input availability, such as expensive Potential for production expansion on 30,000 ha of Overall, considered a high-value crop, but pesticides and land only in Ntchisi due to fertilizers and poor distribution of seeds due to a lack of rural finance to support Potential to triple production (to 3 T/ha) if proper inputs are used concerns about availability of the domestic market. Key risk to be procurement mitigated includes Poor irrigation, thus wheat is a rain-fed crop; with irrigation two harvests could be collected increased access to rural finance for youth, so as to increase the use of inputs Maize Storage constraints: Insufficient storage The presence of the Agricultural Commodity Overall, considered a lower value crop, due capacity and poor Exchange facilitates the to significant risks storage techniques lead use of the warehouse posed by to significant post- receipt system for farmer unpredictable harvest losses, due to access to credit government rotting and weevil infestations Poor access to fertilizer Malawi produces the largest quantities of white maize in Southern Africa after South Africa intervention. It should only be pursued under the following conditions: Diversified crop 94

95 Staple crop Input/production requirement Key strengths/opportunities Value chain observations Poor irrigation access production, so that youth can avoid risks related to government intervention Youth access to post harvest storage facilities to limit postharvest loss Cassava Difficulty in increasing cassava production Cassava is drought tolerant and effectively Overall, considered a low-value without decreasing uses mineral reserves in opportunity, unless: production of other crops. Output can only be improved with better fertilizer and farming techniques infertile soil, making it suitable for Malawian soil Off-farm market demand can be generated through forward contracting agreements Source: Literature reviews; Industry reports; Expert interviews; Dalberg analysis Overall, there are three key input and production requirements necessary for all five crops: fertilizer, improved seed and irrigation. Irrigation affects maize and wheat production in particular. Post-harvest storage techniques are a particular issue of concern, especailly with groundnuts. Aflatoxin contamination plagues the groundnut production sector, making export of groundnuts unfeasible. Poor post-harvest management techniques are a function of limited access to modern farming techniques. 95

96 This is a cross-cutting issue, as farmers and youth, alike, lack access to technical assistance and modern farming techniques. Market opportunity High-potential staple crop value chains should have access to markets, relatively high market prices and low price variability. The table below provides an overview of the potential market opportunity for each staple crop. 96

97 Table 5: Market opportunity summary by staple crop Staple crop Market opportunity observations Groundnuts Price overview 57 : Groundnuts-shelled: 70 MK/kg Groundnuts-unshelled: 50 MK/kg Moderately profitable Demand overview: Weaknesses Inability to export to markets in the developed world (e.g. Europe) due to high aflatoxin 58 levels in groundnuts Inability to test for aflatoxin levels at the farm gate when nuts are sold. There is, thus, no incentive for farmers to manage aflatoxin levels 57 All prices are based on estimates from NASFAM, and are the recommended minimum prices. 58 Carcinogenic fungus which grows on groundnuts. 97

98 Staple crop Market opportunity observations Difficulty in penetrating international markets due to the dominance of Argentina Small (US$ 20 million) SADC 59 groundnut market, which Malawi already contributes to significantly Strengths Increasing production to 1996 levels. This is due to government involvement in the sector, the liberalization of marketing and prices, and major structural adjustment and reform Wheat Price overview: Approximately 120 MK/Kg Highly profitable Demand overview: Weaknesses Highly under-developed local wheat market, with 97% of domestic consumption being imported. This is in spite of 59 Southern African Development Community. 98

99 Staple crop Market opportunity observations favourable conditions for local production, which can be attributed to Malawians preference for growing maize Monopolized markets, as there are only two companies processing wheat in Malawi. There are also few farmers associations dealing with wheat. This makes farmers vulnerable to exploitation when it comes to price negotiation Weak domestic market for flour, bread, cakes etc., due to low Malawian purchasing power Strengths Potential for production expansion on 30,000 ha of land Potential to triple production (to 3 T/ha) if proper inputs are used Large potential market domestically, regionally and internationally Production has increased over the past decade, however, it remains ten times below potential, and remains at 5,000 metric tons, with average yield of 974kg ha. The current demand for wheat is 100,000 metric tons Maize Price overview: 35 MK/kg High volatile pricing due to government intervention (see weaknesses below) Demand overview: 99

100 Staple crop Market opportunity observations Weaknesses Limited surplus production: The majority of production is consumed locally, leaving little surplus for processing and export Government intervention: Due to the strategic nature of maize as Malawi s staple crop, government intervention is resulting in market distortions. This distortion has been seen in the dumping of maize from the strategic grain reserve (SGR) into the market; flooding the market and negatively affecting price realization; occasional export bans in response to expected food shortages within Malawi; price manipulation by government and the ongoing implementation of the farm input subsidy program (FISP), distorting opportunities on the input supply side of the market Strengths The presence of the Agricultural Commodity Exchange facilitates the use of the warehouse receipt system for farmer access to credit Malawi produces the largest quantities of white maize in Southern Africa, after South Africa Cassava Price overview: Cassava is priced lower than other roots/tuber (wheat and maize); this is also the case with processed cassava flour Prices increase during the low supply season, from March/April to October 100

101 Staple crop Market opportunity observations Demand overview: Weaknesses On-farm consumption of cassava is as high as 7, resulting in poor development of market linkages between starch processors, smallholder farmers and markets Limited processor expansion capacity due to a lack of consistent cassava supply. Farmers are unwilling to grow cassava without a reliable market. This results in under-investment in the sector Strengths Cassava is drought tolerant and effectively uses mineral reserves in infertile soil, making it suitable for Malawian soil Existing export market for cassava starch in South Africa Source: Literature reviews, Industry reports, Dalberg analysis 101

102 There is considerable price variability across the different crops. Low maize prices are driven by government intervention, largely in the form of (i) export bans, (ii) price ceilings and (iii) input subsidies. Regardless, youth access to these prices depends on their access and exposure to markets. The market structure for most crops besides tobacco, tea and sugar is driven by disaggregated and poorly organized smallholder farmers that are often unable to trade and market a large portion of their production, resulting in smaller and inefficient transactions. Increasing the sale of tradable staple crops will be highly dependent on not only increased inputs and production, but the ability for youth to aggregate and market their production. The latter can be facilitated through organized groups. To enable this, YIA can support youth in making collective sales of their products. Such support would include providing youth groups with basic post-harvest processing equipment (cleaners, bags, threshers) and helping them establish commercial relationships with local traders (wholesalers/exporters). Youth interest Overall, youth are most interested in farming (production), stock-breeding and agrodealing. This is consistent across all three districts. This can be attributed to one key factor: poor awareness on the various opportunities of agriculture in the value chain. While focus group discussions revealed an emphasis on production or farming opportunities, youth seemed unaware of processing opportunities or even auxiliary opportunities, or opportunities at other points along the value chain. Even when asked about self-perceived development needs and skills deficiencies, youth mentioned crop and animal husbandry for the most part. The only mention of value addition was groundnut processing. 102

103 Figure 35: Youth interest in agricultural production opportunities Question: Would you consider employment opportunities in the agricultural sector? If yes, what type of jobs will fit your interests? (n=246) Male Female % 63% 36% 37% % 16 61% 39% 28% 61% % 61% 39% % 39% Farming (producing agricultural commodities) Stock breeding Beekeeping Fishing Agro dealing (buying and selling agricultural commodities Be employed in a commercial farm Work in a processing unit for agricultural products Serve as an extension agent 103

104 Question: Would you consider employment opportunities in the agricultural sector? If yes, what type of jobs will fit your interests? Mchinji (n=62) Ntchisi (n=87) Rumphi (n=97) Male Farming (producing agricultural commodities) Female Stock breeding Agro dealing (buying and selling agricultural commodities Farming (producing agricultural commodities) Stock breeding Agro dealing (buying and selling agricultural commodities Farming (producing agricultural commodities) Stock breeding Agro dealing (buying and selling agricultural commodities Source: Youth surveys 104

105 Youth show a keen interest in the five crops identified as being high-potential market opportunities. These crops may vary in profitability, but definitely represent crops which are most likely to succeed in the Malawian context. This is for three key reasons: Crop profitability: Each of the crops (except cassava) feature on NASFAM s list of profitable crops in Malawi. District production: Each chosen crop has a high production level at the district level. This bodes well for success, as this is indicative of existing market access and indigenous capability to grow the crop. Lastly, it indicates community buy-in, which makes it easier to promote enterprise development for that particular crop. Youth preferences: It is important to compare district production levels with youth preferences. This is because high-production values for a given crop are not easily attributable to community-based production because of the high presence of commercial estates, which inflates production values. Youth preferences provide insights into crops that they (youth) are most likely grow and, by extension, the crops around which they will most likely grow their enterprises. 105

106 Figure 36: Youth interest in key staple crops, aggregate and by district Youth interest in crops by district (n=348) Groundnuts Maize Soy beans Cassava Pigeon peas Rice Irish potatoes Mchinji Ntchisi Rumphi Source: Youth surveys Opportunity analysis for additional production opportunities Throughout the market assessment, additional value chains also appear to have potential market opportunity for youth. These opportunities include value addition/processing, small-scale gardening (e.g. fruits and vegetables), animal rearing, milk processing and fishery. The following sub-sections provide a brief description of these opportunities. Value addition: Each of the crops identified above can be processed for increased value addition. 106

107 Table 6: Fruit and vegetable value chains for assessment Crop Processing opportunities/ General product opportunities Higher value crops Groundnuts Groundnut oil Fair-trade groundnuts Salting, roasting and flavouring groundnuts Soya beans Soya beans Soya-oil Soya-flour and meals Oils and cakes used for fertilizer, insecticide, animal feed and soap manufacturing Wheat Wheat products (biscuits, cereals, pasta, bread, gluten, starch, malt extract, bran) Lower value crops Lower value crops Maize White maize (raw product) Maize products (snacks, corn, syrup, grouts, corn flour, corn meal, canned corn, cornflakes, cereals, starch, bread, etc.) Cassava Cassava starch Unprocessed cassava plant Source: Stakeholder consultations, Stakeholder validation workshop 107

108 Small-scale gardening : Irish potatoes: Malawi is the largest potato producer in Sub-Saharan Africa, however, most of this production is consumed locally. The potato is the fourth major food crop after maize, sweet potato and cassava. The national production of potatoes is below the market demand, resulting in an import of potatoes from South Africa. An additional challenge is the fact that the varieties grown in Malawi appear to be different from those demanded by processors and retailers (e.g. grocery stores). These are typically potatoes imported from South Africa. The National Export Strategy60 estimates the implicit income of the potato product cluster at US $7,916. Chilies: According to NASFAM Commercial, chilies are the fourth most profitable crop. The implicit income for the paprika and chilies value chain is estimated at US $7,831. However, there are tremendous challenges, as well as opportunities, within the chili value chain. Beans: Beans are crops largely grown by the smallholder sector, however, there is very little value addition taking place. Only 1 of the crop is exported and virtually no processing happens in Malawi, but the bean market is growing and more farmers are moving towards beans as cash crop. Animal rearing: Across all three districts, three types of livestock are prevalent. This includes: (i) chickens, (ii) goats, and (iii) pigs. Milk processing: Consumption of milk products in Malawi is very low, estimated at 4.7 kg/capita/year compared to an African average of 15 kg/capita/year. This is mainly due to the low purchasing power, limited supply and poor distribution beyond the main urban and trading centers. The sale and consumption of milk from the formal sector is focused on urban areas. Ntchisi is considered the only district where milk processing is feasible. This is because the only notable industry in the district is Mwela Mkaka Cooperative Society Milk Processing Plant in Vuso Jere ADC. The plant processes milk into yoghurt, chambiko and pasteurized milk. It has the capacity to process 2,000 liters of milk per day, but farmers supply only 1,000 of milk per month (350 liters per day) due to a limited number of dairy cows. 60 The Ministry of Industry and Trade, Malawi National Export Strategy, , page

109 Fishery: In Malawi, demand for fish, especially tilapia/chambo, continues to increase both in domestic and international markets. However, production is below capacity, at 66,500 tons per year. Rumphi is considered the district most feasible for fish production, for two key reasons: Rumphi is a net exporter of fish: 8 of all fish caught in Rumphi is exported, indicating that a market exists. The fish industry is a high employment industry in Rumphi: There are 252 fish farmers and 426 fish ponds in Rumphi. Farms are present in each of the three traditional authorities in question. Capture fishing is also taking place along the eastern border of Mwalweni TA along the Lake Malawi shore. Varying conditions make certain animals, fruits and vegetables suitable in different locations. The table below outlines which opportunities are suited for each district within the impact area. Table 7: District capability of additional production opportunities by district Additional production opportunity Additional opportunity type Mchinji Ntchisi Rumphi Vegetables Potatoes Chilies Beans Milk processing Yoghurt Pasteurized milk Chambiko 109

110 Additional production opportunity Additional opportunity type Mchinji Ntchisi Rumphi Animal rearing Chickens Goats Pigs Fishing Smoking, sun-drying and pan-roasting Source: Stakeholder consultations, Youth consultations, Stakeholder validation workshop 110

111 The table below provides an overview of the potential market opportunity for each additional opportunity. Table 8: Market opportunity summary by value chain for each additional opportunity Additional opportunity Value chain Market opportunity observations Vegetables Irish Potatoes Price: Approximate price per Kg is between 95 MK and 168 MK with high value potatoes, and MK 40 with low value potatoes 61 Demand: Weaknesses 61 These prices are based on the comparison of three major potatoes purchaser in Malawi: Universal Industry (UIL), Foodworths, PTC/Metro. 111

112 Additional opportunity Value chain Market opportunity observations Sporadic potato demand: Late in 2012, with the currency devaluation and subsequent fuel and forex shortage, processors were downsizing production, which affected potato demand Chilies Price: 340MK/Kg Price fluctuates depending on the season and varies from ~MK450/kg in March to ~MK300/kg in December Demand: The production of Chili in Malawi has significantly increased The production volumes have not been consistent, ranging from 1,800 to 4,000 to tons per year Low domestic demand although growing Huge demand in the international market. Production needs to be larger to meet the increasing global demand Demand for chili is largely generated by the food processing industry, given its importance as an ingredient and coloring agent 112

113 Additional opportunity Value chain Market opportunity observations Beans Only 10 to 15 tons used in the domestic processing industry, the remaining tons are exported Price: 90 MK/kg Demand: Increasing demand due to scarcity and high price of animal protein in the market Production too low to meet demand for growing population and export Milk processing Price: Retail milk price : MK per liter Demand: Local supply of fresh milk from both informal and formal sectors only meets about 60 percent of demand. Therefore, the dairy industry relies on imported milk powder, which covers 90 percent of the unmet demand. South Africa is the largest producer of milk powder, followed by Denmark, the Netherlands, Italy, New Zealand, Argentina and Australia 113

114 Additional opportunity Value chain Market opportunity observations Increasing local demand: attributed to the population growth rate and per capita income. Malawi s milk consumption is the lowest in Africa, at 5 liters per capita, against Africa s per capita of 80 liters, and against the World Health organization (WHO) recommended intake of 200 liters The price of milk remains expensive for the average household, making it a luxury consumption item. Many households still do not possess refrigeration facilities to store fresh milk The most commonly used product is either pasteurized or sterilized milk, because of its affordability Yoghurt and chambiko (thick, sour curdled milk product) are also frequently consumed, taking up at least 15% of sales by volume Sales of butter, cheese, ghee, ice cream and powdered milk are very low, mainly due to the low purchasing power in Malawi Source: Literature reviews; Industry reports; Stakeholder consultations; Dalberg analysis 114

115 Cross-cutting criteria For youth to successfully engage in enterprise development across high-potential value chains, they will need to have adequate access to finance, land, be equipped with specific skills and competencies, and have support for gender mainstreaming. The following subsections examine the environment for enterprise development across the aforementioned criteria. Access to finance The 2013 World Bank Doing Business Report 62 rates Malawi 157 th of 185 when it comes to overall Ease of Doing Business. Malawi scored particularly poorly when it came to access to credit, where it ranked 129 th of 185. This sentiment is supported by the ILO youth survey 63, which showed that approximately 22% of all surveyed self-employed youth identified insufficient financial resources as the key problem in running their businesses. A Dalberg survey of 15 small and medium sized agri-businesses in Malawi found that personal resources were as common a source of funding as commercial bank funding. 62 The World Bank, Doing Business 2013, page International Labour Organisation, School to work transition survey,

116 Figure 37: Sources of financing for sample SMEs How is your organization currently financed? Case studies Own resources Commercial bank Other Joka Cooperative Cooperative involved with production with $1.5 million turnover Current sources of finance: own resources Obstacles to acquiring finance: Do not have sufficient collateral; Interest rates are too high; Processing takes too long Overall perception of credit availability: Very high Local moneylenders Friends and family Microfinance institution Social lender Mzimba Gemstone Cooperative Society Ltd Processing cooperative with $9, 000 turnover Current sources of finance: Own resources, and 2 private equity investment Obstacles to acquiring finance: Lenders keep rejecting my applications, they don t understand the nature of my business Overall perception of credit availability: High Notes: As respondents could pick more than one funding source, the total number of responses is higher than the number of sur vey respondents Source: UMODZI administered credit availability survey, November

117 Respondents also identified two critical issues with commercial bank lending: High collateral requirement: Banks typically require title deeds as proof of collateral; land is still largely governed by customary law, making access to title deeds difficult. High interest rates: Cost of debt is prohibitive (40-6 interest); base lending rate was 32% in November The figure below summarizes the key barriers to finance access faced by small- and medium-sized enterprises, with a specific focus on the availability, affordability and ease of access to finance. This is based on a Dalberg study of 15 small- and medium-sized enterprises. In addition, a broader study of the supply of agricultural financing revealed that funding is mainly supplied to large agri-corporates and commercial farms in the tobacco sector. In addition to tobacco, the sugar, tea and coffee sectors are well financed for businesses with large balance sheets. This is because these sectors are well regulated, making it easier for banks to organize forward contracts with buyers and thus secure loan repayment. 117

118 Figure 38: Key barriers to access to finance for sample SMEs Currently, what are the greatest barriers to accessing What is your perception of access to financing? formal financing for your organization? (n=15) (n=15 1 ) Interest rates are too high 10 7% Very high 2 13% Processing takes too long 8 33% High 2 27% 27% Do not have sufficient collateral Lenders keep rejecting my applications Loan repayment schedule is not flexible enough Medium 47% 2 33% Do not have a good understanding of available options 1 Duration of loan is not long enough 1 Low Very low 13% Availability 2 Affordability 2 Ease of access No lenders operate in my area Do not have detailed financial records for my business 0 0 Notes: 1 Responses are greater than 15 because respondents could pick more than one response Source: UMODZI administered credit availability survey, November

119 Figure 39: Landscape of agricultural lenders to SMEs Landscape of agricultural lenders to SMEs Agri-Corporates Commercial farms and agri-businesses SME processors, traders, dealers and retailers Emergent farmers and micro-businesses Major lending to larger agribusinesses is focused primarily on the tobacco crop Agribusinesses with large balance sheets particularly in the sugar, tea and coffee sectors are also funded Big gap in financing for processors, with additional constraints due to high interest rates, low liquidity in banking sector and devaluation of currency Emergent farmer portfolios of most banks are comprised of farmers in the tobacco industry Small Holder Farmers OIBM and MUSSCO have the largest footprint in terms of number of customers served n the smallholder sector Close competitors are MSB and NBS (commercial banks) 119

120 Overall, commercial banks are reluctant to extend loans to small, rural enterprises for the following reasons: Lack of identification and address system: Borrowers can default on loan repayments and remain undetected Heavy reliance on cash in economy: Lender cannot use stop orders or debit orders to recoup loan repayments Poorly trained farmers: Good crop quality and high yields are not guaranteed, as farmers lack technical capacity to employ the most productive farming techniques Non-accredited quality control centres: The Malawian Bureau of Standards does not have international accreditation. There is also little regulation in the accreditation sector, making it difficult to monitor and regulate crop quality Reliance on rain-fed agriculture: Yields are weather dependent, existing weather-based insurance is (i) too expensive for smallholders and (ii) impractical as weather stations are outdated Unregulated markets: Most markets, except tobacco, tea, coffee, sugar are informal, making it difficult to enforce forward contracting, meaning side-selling is widespread The following table provides a summary of district level funding sources. District Commercial Bank Micro-finance institute Village Savings and Loans Associations Mchinji National Bank of Malawi DEMATT New Building Society Bank Foundation for International Credit Assistance Opportunity International Bank of Malawi PRIDE Malawi 120

121 District Commercial Bank Micro-finance institute Village Savings and Loans Associations Malawi Savings Bank Greenwing Capital Limited Malawi Rural Finance Company Malawi Rural Development Fund Ntchisi Malawi Savings Bank (MSB) SEDOM Community Savings and Investment Programme (COMSIP) under MASAF II DEMAT Malawi Rural Finance Company FINCA Rumphi NBS Bank Malawi Rural Finance Company Rumphi Community Savings and Credit Cooperatives Smallholder Coffee Farmers Trust Rumphi Teachers Savings and Credit Cooperative Pride Malawi Finance Trust for the Self Employed NASFAM Commercial 121

122 Youth Enterprise Development Fund (YEDF) is a national funding source for youthm which is housed under the Malawi Rural Development Fund (MARDEF). Active participants in the fund include: poor women, men and out-of-school youth between the ages of 18 and 35. MARDEF S flagship project is the Enterprise Development Programme. It was started three years ago, with a target age group of year olds. The youth apply to be part of the enterprise development program. Successful applicants receive loans as well as business management and entrepreneurship skills training. The loans are disbursed by YEDF, whilst training is provided by the Technical Entrepreneurship and Vocational Education Training Authority (TEVETA). The loan facility operates as a revolving fund. Seventy percent of the loan is provided in the form of state-of the-art equipment for youth enterprises. Overall, the fund is considered a good concept, but has been marred by poor administration and corruption. For example: (i) purchased equipment under the fund has not been disbursed to youth, partly because it is considered to be incorrect for their needs, and (ii) the training program has been cut down to three days. Access to land There are 5.4 million hectares of arable land in Malawi, covering 45% of the country s land area. Over one million hectares of this land are currently not being used for agricultural production. Utilizing this land could lead to significant benefits for the country. The majority of this underutilized land is customary land. Access to land in Mchinji Mchinji has three land tenure systems: customary, public and private leasehold land. Customary land comprises approximately 47% of the total land and is primarily used for agriculture, specifically for growing crops such as maize, tobacco and groundnuts. It is also used for community based forests. 122

123 Figure 40: Mchinji Land access status for the youth across surveyed counties Access to land_mchinji Yes No 81% 85% % 15% Chiwoshya Mikundi Average farm size: Chiwoshya: 2 acres Mikundi: 2.7 acres Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis Most youth believed that they had access to land for farming purposes. The average farm size was two acres in Chiwoshya and 2.7 acres in Mikundi. In cases where they felt that land was not available, youth felt that they could: (i) appeal to the village headman/chief for land, (ii) inherit land from their parents, and (iii) rent farm land. To access land from traditional leaders, YIA should support youth in this process by submitting formal requests, specifying intended used of the land and beneficiaries. Parents on the other hand, were quite ambivalent about land availability for youth. There were comments that supported the notion that there are land shortages, and comments that disputed that notion. Additional findings on land access indicated: Under-utilized land: The land shortage exists because families who have land underutilize it Difficulty in distributing small pieces of land: Families have small fields, (~2 acres) and are under pressure to share it amongst all of their children High rental cost: Parents point to high rental costs for land which is available for private leasehold 123

124 Land availability outside of Malawi: Alternative land is available in Zambia and Mozambique. Children choose to work in those countries to access land, as land in Malawi can only be accessed fully when their parents die Gender discrepancies: Boys have more access than girls, as girls are considered to have access through marriage Access to land in Ntchisi In Ntchisi, there are also three categories of land tenure: customary, public and private. Customary land comprises 55% of the available land. It is controlled by traditional leaders, specifically chiefs and village headmen. Public land is held in a trust by government. It is controlled by the District Assembly. Private land is divided into leasehold and freehold land. Leasehold is held by individuals and private and public institutions. Freehold is held mainly by religious institutions and comprises only a small segment of the district s total land area. Figure 41: Ntchisi - Land access status for the youth across surveyed counties Access to land_ntchisi 33 Yes No 17 87% % Chikwatula Kalira Kasakula Average farm size: Chikwatula: 2.4 acres Kalira: 2.2 acres Kasakula: 1.75 acres Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis Again, for the most part youth were of the impression that they would be able to access land. The land sizes varied, but were clustered around the two acres mark. Parents in Ntchisi spoke about population pressure as the main reason for poor land access. 124

125 Specifically, they felt that large families made land access difficult, as it was being subdivided amongst many family members. Over-population also made land availability difficult, as the Chief has less land to rent. Land rental is generally problematic, as rental is considered too high. Access to land in Rumphi There are four main categories of land-holding in Rumphi: customary (65%), government, public and private. The difference between government and public land is that the former comprises land acquired and privately owned by the government for specific national use, or even for private use at the government s discretion. This includes schools, hospitals, etc. Public land is land set aside by government for specific reasons, such as national development, security and tourism. Public land also includes all land vested in government due to uncertainty in ownership, abandonment and a lack of usability. The Socio-Economic Profiles describe several challenges with the Rumphi land tenure system (it is likely that these challenges can be generalized across all three districts): Traditional leaders tend to encroach on each-other s customary land, as this land is typically not documented. In urban areas, such as Bolero and Boma, traditional leaders no longer have their ordinary powers of land allocation, as these areas are now extension planning areas. This land allocation system has resulted in double-allocation, as both junior and senior government officials have land-allocation powers. A lack of adherence to official processes of land acquisition from the public has increased the prevalence of illegal development. This is because members of the public are opting for shortcuts in the land acquisition process. Poor public knowledge of the various land tenure systems results in disputes that can only be resolved onsite. The Land s Office lacks the funding to travel to sites. Poor public knowledge is heightened by an antagonistic relationship between traditional authorities and the Land s Office. Traditional leaders consider the office a threat to their authority. The profile also outlines key strengths within the land tenure system: 125

126 Traditional authorities are easily able to mediate land disputes within the customary land-holding system, as leaders document land ownership. Land transfer also occurs very speedily, as leaders are the main decision-making authority. Dispute resolution also occurs with ease when private land is formally leased from customary and public land. The lease typically lasts for a period of time, granting the lessee exclusive use of the property. Figure 42: Rumphi - Land access status for the youth across surveyed counties 36 Access to land_rumphi Yes No Mhuju Ntchenachena Chiweta Average farm size: Mhuju: 2.1 acres Ntchenachena: 2.0 acres Chiweta: N/A Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis In Rumphi, youth in two out of the three extension planning areas were quite optimistic about their ability to access land. Again, parents had a mixed response to the issue of land availability and access for the youth. On the one hand, parents complained about how over-population was making land scarce. They also mentioned how disputes over land were becoming very common, particularly amongst children seeking independence from their parents. This was because land demand significantly out-stripped supply. There were, however, parents who argued that land was not an issue. They spoke about how land access requires going to the Chief and getting allocation from him/her. They also added that they were willing to share their land allocation with their children and that children often acquired more land when they got married. In addition, parents 126

127 added that local authorities were willing to allocate land to organized youth groups for development purposes. Parents were also quick to mention that land availability was not the sole concern. An additional challenge was accessing the necessary tools, equipment and machinery to make the land conducive for agriculture. For example, a combination of land location and rainfall patterns sometimes necessitated irrigation farming. This is not easily accessible by the youth. Skill requirements In terms of skills, an African Development Bank Report 64 shows that only 1.9% of all practitioners in the agriculture sector have a higher education qualification. This is in part due to the fact that enrolment rates at both institutions of higher education and TEVETA institutions are quite low in Malawi. Both tertiary enrolment and TEVETA enrolment rates are the lowest in the Southern African sub-region 65. Youth were quite vocal about deficiencies in their skill sets. Skills deficits in Mchinji (identified by youth) Males and females in Mchinji had slightly different prioritization in terms of the skills deficit. Whilst boys wanted to receive training in farming, craftsmanship, stock-breeding and agro-dealing (in order of preference), girls prioritized craftsmanship, farming, general trading and agro-dealing (in order of preference). 64 African Development Bank, Skills for Private Sector Development, 2009, page Mauritius, Botswana, South Africa, Zambia, Madagascar, Mozambique, Lesotho and Malawi. 127

128 Figure 43: Youth interest in skills training in Mchinji Question: In what area would you like to receive these trainings? Note: data presented for boys only Question: In what area would you like to receive these trainings? Note: data presented for girls only % 18% 16% 15% Farming Craftsmanship Stock breeding Agro dealing Mchinji % 8 9% 7% 5% 1 1% General Trading Formal work as employee Fishing Beekeeping Other 22% 18% 16% 15% 13% Craftsmanship Farming General Trading Agro dealing Stock breeding Mchinji % 6% 5% Formal work as employee Fishing Beekeeping Other Note: 1 total number of responses is higher than the total number of respondents as respondents could pick multiple responses Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 128

129 During focus group discussions, youth were more specific about their training needs. The needs were clustered in three main groups: Crop husbandry, such as tilling, weeding, irrigation, and fertilizer application, cultivating and harvesting skills (with a focus on modern farming methods); Animal husbandry, such as housing, medication, and feeding; Agribusiness knowledge. Skills deficits in Ntchisi (identified by youth) In Ntchisi, again, there was a disparity between male and female preferences. Boys identified the following skills, in order of preference: craftsmanship, farming, stockbreeding and agro-dealing. Girls, on the other hand, identified farming, stock-breeding, craftsmanship and general trading as their preferred activities. 129

130 Figure 44: Youth interest in skills training in Ntchisi Question: In what area would you like to receive these trainings? Note: data presented for boys only Question: In what area would you like to receive these trainings? Note: data presented for girls only % 17 19% 19% 15 14% 9% 8% Ntchisi Craftsmanship Farming Stock breeding Agro dealing Formal work as employee 14 8% 7 4% 0 General Trading Fishing Beekeeping Other 19% 19% 18% Farming Stock breeding Craftsmanship General Trading Agro dealing Ntchisi 11 11% 11% 1 Other 7 6% Fishing 6 5% Formal work as employee Beekeeping Note: 1 total number of responses is higher than the total number of respondents as respondents could pick multiple responses Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 130

131 In Ntchisi focus groups shed light on some of the required skills: Crop husbandry: Good farming methods, such as fertilizer application, plant spacing, etc.; Animal husbandry; Agro-processing: Training in value addition, i.e. processing groundnuts into cooking oil; Business Knowledge: Skills in profit calculation. Skills deficits in Rumphi (identified by youth) In Rumphi, male and female preferences were quite aligned. In order of preference they were: craftsmanship, stock-breeding and farming. 131

132 Figure 45: Youth interest in skills training in Rumphi Question: In what area would you like to receive these trainings? Note: data presented for boys only 39 Question: In what area would you like to receive these trainings? Note: data presented for girls only % 19% 16% Rumphi Craftsmanship Stock breeding Farming Agro dealing 19 12% 11% 11% Formal work as employee 9 5% 7 4% 0 General Trading Fishing Beekeeping Other 25% 19% Craftsmanship Rumphi Stock breeding Farming Agro dealing 14 15% 12% 12% 11% Formal work as employee General Trading 4 3% 4 3% Beekeeping Fishing Other Note: 1 total number of responses is higher than the total number of respondents as respondents could pick multiple responses Source: Dalberg stakeholder consultation, 21 January-1 February; Dalberg analysis 132

133 Youth in Rumphi were far less specific about their skills deficit. Their main concern was that they had a lack of exposure to modern farming techniques. A substantial challenge in improving the skill set in Malawi is the limited capacity available in the TEVET 66 sector. The National Education Sector Plan 67 outlines key issues in TEVET: Inadequate funding due to unsystematic management and operation: Institutions have obsolete an inadequate equipment and low funding allocations. Whilst the private sector gives at least one percent levy to TEVET, there is no mechanism to ensure that those funds are channeled for the needs of colleges. Outdated curricula: An additional consequence of poor funding is the underperformance of graduates, as curricula are often outdated and overlap across different industries. Poor teacher training for training colleges: Teacher training is currently conducted at the Malawi Polytechnic. Graduates from the Polytechnic have been found to lack the necessary skill-set, e.g. a lack of apprenticeship competence. Poor mainstreaming of agricultural sector related skills: Agro-business and entrepreneurship are not mainstreamed in the TVET sub sector. Gender equity From the above analysis, it appears that the selected value chains require a range of skills, varying land and financing needs, the ability to rapidly generate some income and access to markets. However, as mentioned in the youth profile chapter, girls are more vulnerable to gender-based discrimination across a multitude of dimensions, affecting their role in society, and subsequently their developmental assets, educational attainment and earning potential. This context also impacts their ability to develop sustainable enterprises, as illustrated in the below figure. 66 Technical, Vocational Education and institutions. 67 Ministry of Trade and Industry, National Export Strategy, , page

134 Figure 46: Limiting factors and their impact on enterprise development Source: Stakeholder interviews, Dalberg analysis 134

135 As illustrated in the above figure, barriers affecting women are greater than those affecting men, affecting overall livelihood impact. For women to move to the transitional state, there is a need for interventions seeking to ease barriers affecting them. For the program, this can be done by selecting value chains in which women can more easily engage. According to the latest data available, some 78% of rural households are poor with 25% being headed by women 68. These households have one-third less working members than male-headed households, which implies that women face more labour constraints than men. Female-headed households are more disadvantaged in terms of education, with on average one year of education as opposed to four for male in the lowest wealth quintile. As a result, they have poorer employment prospects than men. Female-headed households, particularly poorer households, are more involved in agricultural wage labour characterized by low income. Main constraints faced by women in agriculture include access to, and control over, agricultural assets including land, labour, and cash, which results in poorer availability of advice, loans, and production inputs. In addition, few women are active participants in household decision making, and most are overburdened by the daily labour of cultivation, drawing water, cooking, and running the household. Furthermore, following the death of a spouse, a widow may lose her access to land and household resources, rendering her destitute and highly vulnerable. As such, Youth in Action s strategy towards gender equity should particularly consider providing inputs especially to women groups. Based on stakeholder consultations, barriers affecting women can be further mitigated by initially integrating women into specific value chains that will facilitate enterprise development given the current barriers faced by women, eventually reaching the optimal state. The following table assesses the likelihood for each categorical value chain opportunity to integrate women

136 Table 9: Ability for each value chain opportunity to initially integrate girls Value chain opportunity Key Observations Ability to initially integrate girls Crops Moderate to high initial financing requirement; access to land will initially hinder access to crop value chains Limited to moderate skills gap across critical and high value points along the value chain Vegetables High initial financing Limited to moderate skills gap at the production level Ability to produce at the household level Animal rearing A range of financing requirements depending on the animal (poultry, pig, goat) Requires small land Limited skills gap due to familiarity, though moderate skills gaps occur regarding improved practices Ability to produce at the household level Source: Literature review; Stakeholder interviews; Dalberg analysis Based on the enterprise development analysis, the following figures outline risk factors that should be considered by Youth in Action across the value chains, and is followed by an analysis of the processing, marketing and auxiliary services opportunities along the value chain. 136

137 Risk factors across the short-listed staple crop value chains Figure 47: Risk factors across the value chain: staple crops Source: Literature reviews, expert interviews, Dalberg analysis 137

138 Figure 48: Risk factors across the value chain: other opportunities Value chain opportunity assessment and selection summary 138

139 Figure 49: Value chain opportunity assessment and selection summary, crops 139

140 Figure 50: Value chain opportunity assessment and selection summary, fruits and vegetables Source: Dalberg analysis Note: Scoring based on an assessment of each district s comparative advantage across the different value chain. 140

141 Figure 51: Value chain opportunity assessment and selection summary, rearing Source: Dalberg analysis Based on the analysis provided in the youth profiles and the assessment of employment opportunities, Youth in Action should: i) primarily focus on facilitating youth employment through enterprise development for out-of-school and unemployed youth in the impact area and ii) implement training and support programs that will promote the poultry, pig, cassava and soya bean value chains. 141